Debt Relief Order
If you have personal debts that you can’t afford to pay and you meet certain qualifying criteria, a Debt Relief Order can be a cheaper alternative to going bankrupt. A debt relief order is a Court Order granted by an application through The Insolvency Service. They are designed to help people on low incomes that are struggling to keep up payments on their debts. A debt relief order is a better alternative to bankruptcy in certain circumstances.
Do I qualify for a Debt Relief Order?
*Qualifying debts include credit cards, loans, overdrafts, HP agreements, rent, utility bills, council tax and several other types of debt. If you own a property, even with a mortgage secured against it, it is extremely unlikely you will qualify for a debt relief order.
Debt Relief Orders for Self-Employed People
You will not be allowed to act as a Company Director without specific Court permission if you are subject to a Debt Relief Order. In addition, there will be many restrictions placed on carrying on business as a Sole Trader or Partnership. If you are self-employed, it is essential that you take specific advice before applying for a debt relief order.
How does a Debt Relief Order work?
A debt relief order normally lasts for 12-months. During the period of the order you will not be required to make any payments to the creditors listed in the application. The creditors will not be able to pursue you for the money owed to them. Once the order finishes any debts remaining will be written-off.
If your circumstances change during the term of the order, you must inform the Official Receiver. Relevant changes include increases in income, windfalls, assets you have been given and changes to any benefits you receive. Failure to do this could be treated as an offence.
Implications of a Debt Relief Order
You will not be allowed to build up any new debts or borrow any money whilst you are subject to the order without telling the lender you are subject to a debt relief order. Details of the Debt Relief Order will remain on your credit file for 6-years. This may make it difficult to obtain credit in the future. If the Official Receiver believes you have provided false or inaccurate information they may apply for a Debt Relief Restriction Order for up to 15-years.
Contact Emma on 01204 255 051 or, email at the above address
About Anderson Brookes
Before discussing your financial affairs, we believe that you should check the credentials of the individual or organisation you intend speaking with. We are no different:
Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority; our FCA registration number is 669796. You can confirm our details on the FCA website www.fca.org.uk
Anderson Brookes Insolvency Practitioners Ltd is a firm of Insolvency Practitioners. Rikki Burton is licensed to act as an Insolvency Practitioner in the UK by the ICAEW.
Anderson Brookes Ltd and Anderson Brookes Insolvency Practitioners Ltd are both registered at 6th Floor, 120 Bark Street, Bolton, Lancashire BL1 2AX
Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA). Anderson Brookes Insolvency Practitioners Ltd is a separate company. Rikki Burton is Licensed to act as an Insolvency Practitioner by the ICAEW.
Yes. We offer a Free Consultation in all cases. We will ask questions to help us understand your circumstances and provide you with a specific recommendation. Should you decide to move forward with any recommendation we have made, we will confirm any costs involved in writing, before accepting your instructions. In some cases, there will be no charge made by Anderson Brookes for the services we provide.
Yes. Although we are based in Bolton, Lancashire, we deal with clients throughout the UK. Most of the work we do can be completed over the phone. You will not need to visit our offices; we can however, arrange to come and see you at your home or business if you prefer.
Yes. If we are instructed early enough, we are usually very successful in stopping bailiffs from removing assets. We have written a useful guide to the powers of bailiffs on this website; please visit our Help Guide section. Whilst the Help Guide is very useful, it is no substitute for specific personal advice. Please call us now and speak with a qualified Adviser.
In most cases, we are able to speak directly with the bailiff; once they understand your circumstances, they may allow us extra time to put a repayment plan together. If the bailiff is not receptive to our requests, we may be able to help you get a Court Order blocking bailiff enforcement action for around one month. This should give us all the time we need to put a formal repayment plan in place.
No. You do not need to arrange an appointment, simply call us on 0800 1804 933 and we’ll be able to help. If you prefer, we can arrange to call you at a time convenient to you.
Questions about Debt Relief Orders
The Insolvency Service will charge you £90 to process your application for a debt relief order. Unlike in the case of bankruptcy, there are no discounts available for DRO application fees. You will not be able to claim the fee back in the event your application is rejected or revoked.
If you don’t qualify for a Debt Relief Order, an IVA is sometimes the best alternative. Read more about Individual Voluntary Arrangements (IVA’s).
See further guidance and CVL frequently asked questions.
Once your DRO application has been accepted, all your debt repayments and interest are frozen for 12-months. If your financial position has not improved at the end of the year, your debts will be written off.
See further guidance and CVL frequently asked questions.
It may be that declaring bankruptcy is the right solution to your debt problems however, you should take professional advice before proceeding with this. There are lots of other personal debt solutions available and it is vital that you have considered all these before going bankrupt.
Once we understand your financial circumstances, we will explain all the advantages, disadvantages and implications of bankruptcy before providing you with a recommendation. At that time, if you still feel bankruptcy is the best option you will understand the full process and know exactly what to expect.
How We can Help
Anderson Brookes is fully authorised by the FCA to provide advice on Debt Relief Orders. If we believe a debt relief order is the best debt solution for you, we will confirm this. Anderson Brookes do not administer or manage debt relief orders. If a debt relief order is right for you, we will provide you with the contact details of a reputable, non fee-charging organisation that will assist you.
For more information about our debt solutions contact us today.
WHAT OUR CLIENTS SAY
“The service I received from Anderson Brookes was excellent. I’d already made the decision to cease trading but I didn’t know how to deal with my legal responsibilities as a Director. I went through the process of Creditors Voluntary Liquidation (CVL). Anderson Brookes helped me through every stage”.
“Neil helped me through the process of Liquidating my company. Although closing-down the company was quite stressful, it was surprisingly quick and Neil made sure I knew what to expect at each stage. I have recommended other business owners to Anderson Brookes and always received great feedback”.
“Why my company ran into cash-flow difficulties, I was introduced to Neil at Anderson Brookes. We discussed lots of different options but I decided to place the company into Liquidation. The problems are now behind me and I’ve been able to set up a brand new, debt-free company”.
“Anderson Brookes helped me arrange a Business IVA. I was a sole trader and my plumbing business had run into financial problems. I was able to repay my debts through a voluntary arrangement over 5-years. I’m pleased to say; the business has been trading very successfully now for the last few years”.
“Just thought I would let you know that business is going extremely well I have no credit commitments, new car, new van and 2 good holidays a year and I really do owe all of that to you. I really appreciate your help in turning my life around. I would hate to think about where I would be if I hadn’t met you”.
If a County Court Judgment (CCJ) has been registered against you or your business, you will usually have 28 days to pay the debt in full. If you are unable to do this, it is likely the CCJ will be Enforced by the Court; this could mean contact from Bailiffs. Read our CCJ Guide
If you have fallen behind with your payments to HMRC, you may qualify for a “Time to Pay Plan”. Although not well advertised, HMRC will sometimes allow business owners up to 12-months to repay Tax Arrears, including VAT, PAYE, Self-Assessment. HMRC Help Guide
“Can a Bailiff force entry into my home or business premises?” – This is one of the most common questions our Advisers are asked. The Good News is that new rules recently came into effect, giving more protection from unfair behaviour by Bailiffs. Read our Bailiff Help Guide
ADVICE YOU CAN TRUST
The Financial Conduct Authority (FCA). Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority; our registration number is 669796. You can confirm our details at www.fca.org.uk
Rikki Burton ACA is licensed and regulated to act as an Insolvency Practitioner in the UK by the Institute of Chartered Accountants in England & Wales.
The Association of Business Recovery Professionals. R3 promotes best practice for professionals working with financially troubled individuals and businesses in the UK
The Information Commissioners Office (ICO), promotes data privacy for individuals. Our ICO registration reference numbers are Z5595675 and ZA201949
ANDERSON BROOKES GROUP
Anderson Brookes Insolvency Practitioners Ltd is a limited company registered in England and Wales; the company registration number is 10324159. Registered office, First Floor, Fairclough House, Church Street, Adlington, Chorley PR7 4EX. Rikki Burton ACA is licensed and regulated to act as an Insolvency Practitioner in the UK by the Institute of Chartered Accountants in England & Wales. Our VAT Registration Number is 249 5912 70. Data Protection: our ICO registration reference number is ZA201949.
Anderson Brookes Insolvency Practitioners Ltd operate a complaints procedure. In the first instance, please call 01204 255 051 or email info@andersonbrookes.co.uk to request a copy of the complaints process. If we are unable to deal with your complaint to your satisfaction, your complaint should be made to the Insolvency Complaints Gateway by visiting their website https://www.gov.uk/complain-about-insolvency-practitioner and completing and submitting their online form. Alternatively, you can print the form from their website and send it by post to The Insolvency Service, IP Complaints, 3rd Floor, 1 City Walk, Leeds, LS11 9DA or contact them by telephone on 0300 678 0015 (Monday to Friday 9am – 5pm).