In order to be eligible for a Debt Relief Order, a debtor must have no more than £30000 of qualifying debts. Qualifying debts are those that can be covered by the Debt Relief Order and include:
- Credit card debts
- Overdraft debts
- Rent and Rent Arrears
- Utilities Bills
- Telephone Bills
- Council Tax Arrears
- Benefit Overpayments (Unless the benefit was obtained by fraud)
- Hire Purchase Agreements
- Buy Now, Pay Later Agreements
In the case of Hire Purchase Agreements, you may have to return the items purchased unless someone can make the payments for you. Once on a Debt Relief Order, you will not be able to continue making payments against Hire Purchases.
There are a number of debts that are ineligible for inclusion on a Debt Relief Order as well. These include:
- Student loans
- Child maintenance or support
- Court fines, confiscation orders and other fines relating to criminal activity.
- Social Fund Loans
If you’re not sure whether your debts could be included in a Debt Relief Order, get in touch for free, confidential debt advice.