Bankruptcy and Debt Relief Orders

It is not unusual for credit commitments to become overwhelming. Whilst creditors are vigorously chasing debts it can be difficult to get finances back on track and if it seems that there is no light at the end of the tunnel, a fresh start may well be the best solution.

If a fresh start is the best option to get you free from your debts, we can put you on the right track.

Bankruptcy is just one of several options our highly trained and experienced consultants will help you to consider. Filing for bankruptcy is probably one of the biggest decisions any of us will make and it shouldn’t be entered into lightly, so full and frank advice and support is essential.

The Bankruptcy procedure has two main aims:

  • To free an individual from the pressures of unmanageable debt and enable him or her to move on and make a fresh start as soon as possible.
  • To ensure that an individual’s assets are realised and fairly distributed among the creditors.

The Courts are officially responsible for making a Bankruptcy order against an individual. The assets of the bankrupt individual then fall under the control of a Trustee, this will be either the Official Receiver, or a licensed Insolvency Practitioner. The Trustee will be responsible for uncovering as much as possible about the debtors assets and liabilities and then maximising returns for the creditors from the assets available, within given guidelines. Once a Bankruptcy order has been made against you, your creditors can no longer pursue you for payment. Making payment to your creditors becomes the responsibility of the Trustee.

What we provide for you

  • Our trained Bankruptcy Consultants will give you all the facts on Bankruptcy in plain English to help you make an informed decision as to whether this option is 'best advice'.
  • You will be given your own dedicated Bankruptcy Consultant who will explain the whole process step by step, provide support and guidance, lessen the stress and confusion of the form completion process and reduce the necessity for you to have direct contact with your creditors.
  • You will have access to our Bankruptcy support line for the first year, where we will be able to provide you with ongoing advice and guidance in relation to your Bankruptcy.

Debt Relief Orders

What is a debt relief order?

If you are on a low income, Credit Restructuring, an IVA and even Bankruptcy may not be suitable for your circumstances. In April 2009 a new debt solution, called a Debt Relief Order became available in the UK. This was introduced by the Tribunals, Courts and Enforcement Act 2007 and it is intended to give debt relief to people in England and Wales who owe relatively little money, have little or no disposable income and no assets to repay what they owe, and cannot afford to make themselves bankrupt.

Who is eligible for a Debt Relief Order?

  • You owe up to a maximum of £15,000 only
  • Your total gross assets must not exceed £300
  • After taking away tax, national insurance contributions and normal household expenses, your disposable income must not exceed £50 a month
  • Your place of domicile (the country legally recognised as your home) must be in England or Wales, or at any time in the last 3 years you must have been resident or carrying on business in England or Wales
  • You must not have been subject to a previous DRO within the last 6 years
  • You must not be involved in any other formal insolvency procedure at the time you apply for a DRO.

If you are currently petitioning for bankruptcy (asking a court to make you bankrupt) and the court has not referred you to the DRO procedure, then you won’t be allowed to apply for a DRO. If a creditor is currently petitioning to make you bankrupt, then you must get the creditors permission before applying for a DRO.

The official Receiver may not approve the application in certain circumstances. For example, if you have given away or sold property for less than its true value, or if you have preferred any creditors in the last 2 years