Debt Relief Orders in London, Birmingham and Northampton

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Nevertheless, it is crucial to acknowledge that Debt Relief Orders carry their own set of consequences. The Insolvency Service strongly advises seeking independent guidance, before making the decision to pursue a DRO.

Our team of debt advice specialists is committed to ensuring that you grasp both the advantages and disadvantages of this debt management approach. This enables you to make a well-informed choice regarding your next steps. However, if you are battling with debt and meet the strict eligibility criteria, having minimal assets and disposable income, seeking a Debt Relief Order might be worth your consideration.

Contact our Debt Relief Solicitors in London, Birmingham, and Northampton at 0300 303 2071 or send us an email at info@witansolicitors.co.uk to benefit from a free, no-obligation consultation.

What are Debt Relief Orders? 

Debt relief orders function as legal directives which are available to individuals grappling with unmanageable debt. They operate similarly to court orders, assisting those unable to meet their repayment obligations.

Upon obtaining a Debt Relief Order, the individual is relieved from making payments towards the specific types of debts that are outlined in the order. Importantly, creditors, encompassing individuals and businesses to whom money is owed, are barred from pursuing enforcement actions against the debtor.

Are You Eligible?

Determining whether a Debt Relief Order aligns with your circumstances involves considering a specific criterion. A DRO might be suitable if you meet the following conditions:

• Debt Threshold: You owe no more than £30,000 to your creditors
• Home Ownership: You reside in England or Wales but do not own a home
• Asset and Savings Limit: Your assets and savings do not exceed £2,000, excluding essential household items and items necessary for work
• Limited Spare Income: You have little spare income, with no more than £75 remaining each month
• No Recent Debt Relief Order: You have not obtained a Debt Relief Order in the past six years, and are not undergoing any other Insolvency Procedure

Meeting these criteria is crucial for eligibility. However, individual circumstances can introduce nuances to the application of these rules. For instance, the value of cars may be considered an asset if they exceed £2,000 unless they have been modified due to a disability.

It’s important to note that a Debt Relief Order may be unavailable if you’ve sold or given away assets in recent years or if you’ve prioritised repaying certain debts over others.

Our guidance can offer detailed insights into your eligibility for a Debt Relief Order. Additionally, we will outline alternative options, as obtaining a Debt Relief Order may not always be the optimal choice based on your unique situation.

How Our Solicitors Can Help

Our solicitors can assist you in assessing your eligibility for a Debt Relief Order, as well as advising and representing you throughout the process of obtaining one. When it comes to the stress and burden of owing money, let our experts share your load. We can support you throughout your DRO process:

• Assessment of Eligibility – we will assess your financial situation to determine if you meet the eligibility criteria for a Debt Relief Order. This includes having debts below a certain threshold, low income, and minimal assets.
• Documentation and Application – we will assist in gathering and organising the necessary documentation required for the DRO application. This may include details of your debts, income, living expenses, and any assets you may have.
• Completing the DRO Application – the application process for a DRO involves completing a detailed form. Solicitors can help ensure that the application is filled out accurately and thoroughly to avoid any delays or complications.
• Communication with Creditors – we can communicate with creditors on your behalf. In some circumstances, we may negotiate with creditors to try and reach an agreement or provide evidence to support your application for a DRO.
• Representation in Court – in some cases, attending court may be necessary for the approval of a DRO. We can represent you in court, presenting your case and providing any additional information required by the court.
• Post-DRO Support – after a DRO is granted, we will still provide guidance on managing your finances responsibly to avoid similar issues in the future.
• Appeals – if your DRO application is initially rejected, we will help you understand the reasons for the rejection and assist in the appeals process if applicable.

No matter how complex a case is, we will tailor our approach to your specific set of circumstances. Our remit extends beyond the standard scope of Debt Relief Orders as we can help you explore alternative solutions such as personal bankruptcy.

Why Choose Witan Solicitors?

With a wealth of expertise exceeding 100 years combined, our legal team specialises in corporate law and insolvency, ensuring a reliable and seasoned partner for your legal needs.

• Established in 2014 – we have been a trusted ally for both UK and international businesses, offering comprehensive legal support
• Recognised by Legal 500 – our solicitors have achieved recognition for their services in the legal field
• Leading Industry Knowledge – we continuously enhance our expertise to provide high-quality legal advice to our clients
• Multilingual Support – we address the diverse needs of international businesses, delivering tailored legal guidance in over 10 languages

Our debt relief solicitors operate from strategic locations in the UK—London, Birmingham, and Northampton—ensuring accessibility for debt and insolvency expertise near you.

To help you determine if Witan Solicitors is the right fit for your business, we extend a complimentary, no-obligation consultation to all new clients. This initial meeting allows us to understand your circumstances better and provides an opportunity for you to meet our debt relief solicitors, gaining insights into how we can assist you. There is no obligation to engage with us further if you are not confident in doing so. To schedule your free consultation, contact us today at 0300 303 2071.

FAQ

What is the duration of Debt Relief Orders?

The duration of a Debt Relief Order is typically 12 months. During this period, individuals benefit from a moratorium on most of their debts, providing them with temporary relief.

Is it possible to make payments to creditors while the Debt Relief Order moratorium is in effect?

While a Debt Relief Order is in effect, individuals are generally prohibited from making payments to most creditors listed in the order. Exceptions may include certain priority debts, such as ongoing utility bills and rent.

Which debts are excluded from the coverage of Debt Relief Orders?

Debt relief orders primarily cover unsecured debts, excluding certain types of debts such as secured loans, court fines, child support, and certain student loans. It is crucial to consult with a legal professional to determine the specific debts covered by a DRO.

What repercussions arise from obtaining a Debt Relief Order?

Obtaining a Debt Relief Order can have significant consequences. While it offers relief from qualifying debts for a specified period, it is important to note that it may affect your credit rating and financial reputation. Additionally, failure to comply with the terms of the DRO can lead to serious legal consequences.

Does obtaining a Debt Relief Order have an impact on your credit score?

Yes, obtaining a Debt Relief Order can impact your credit score. The entry of a DRO on your credit report may affect your ability to access credit in the future, as it indicates financial difficulties. It is advisable to seek professional advice before pursuing a DRO to fully understand its implications on your creditworthiness.