Debt Relief Orders - Eligibility Criteria

The requirements for a Debt Relief Order are as follows:

* The debtor is unable to pay his/her debts;

* The debtor's total unsecured liabilities must not exceed £15,000;

* The debtor's total gross assets must not exceed £300;

* The debtor's disposable income, following deduction of normal household expenses, must not exceed £50 per month.

* The debtor must be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales.

* The debtor must not have previously been subject to a DRO within the last 6 years.

* The debtor must not be involved in another formal insolvency procedure at the time of application for a DRO, such as:

a) An undischarged bankrupt;

b) A current Individual Voluntary Arrangement;

c) A current Bankruptcy Restrictions Order or Undertaking;

d) A current Debt Relief Restrictions Order or Undertaking;

e) An interim order;

f) A current pending debtor's bankruptcy petition in relation to the debtor but the debtor has not been referred to the DRO procedure by the court as a more suitable method of debt relief;

g) A current pending creditor's bankruptcy petition against the debtor but the debtor has not obtained the creditor's permission for entry into the DRO process.