This is a new, simpler, quicker and cheaper form of bankruptcy which can be arranged through an approved intermediary. However, you have to meet certain minimum requirements to be eligible. The mains ones are that the total of your unsecured debts must be less than £15,000, your total assets must be less than £300 (although there are conditions on some other assets) and your disposal income must be less than £50 per month.

The Order lasts for a period of one year, but not all debts can be included. At the end of the period your debts are settled (with some exceptions such as those that couldn’t be included).

None of your creditors that are included within the Order can take further action against you unless the court gives them permission.

There are a number of things that you would need to consider. Some of these are shown below.

You can’t have a Debt Relief Order if you’ve had one in the last 6 years, have an existing bankruptcy order, or an IVA.

If you’re looking to obtain credit of £500 or more you must tell the lender that you have a Debt Relief Order.

Debts that aren’t included within the Order must still be paid.