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Debt Relief Orders are similar to bankruptcy but designed for people who cannot afford that option.

A number of factors are taken into account before a Debt Relief Order can be made. The orders are aimed at people with debts of less than £15,000. They are also solely for anyone who does not own their own property and whose income is less than £50 a month after all the essential bills have been paid. There are some restrictions as well. You cannot have an order if you have savings of more than £300 or a vehicle worth more than £1,000.

The orders are granted by the Insolvency Service, which is an executive government agency. An authorised advisor will be able to apply for one on your behalf, once they have checked you meet the criteria.

When you have your debt relief order, you will no longer need to pay any of your creditors. They will be informed about the order by the Insolvency Service and they will no longer be allowed to pursue further action against you.

Among the debts which can be included are credit cards, loans, overdrafts, council tax and bills and hire purchase arrangements. However, it does not cover court fines, child support maintenance or student loan repayments. The order will last for 12 months, during which time your creditors will not be able to make contact with you. Once the order is complete, all the debts listed on the order will be written off.

A Debt Relief Order carries similar restrictions to bankruptcy but costs much less. The £90 charge can be paid off in instalments over a six month period. However, your order won't be considered until the fee has been paid.

Our name will also be published publically on the Insolvency Register where it will remain for 15 months.