Those on low incomes and with very few assets can get help to escape from debt through Debt Relief Orders, which came into being in April 2009.
If you have less than £15,000 unsecured debt, less than £50 monthly disposable income to clear it and less than £300 in assests, you will be able to apply for a Debt Relief Order, which will help people in England and Wales.
The Scottish equivalent is LILA (Low Income, Low Assests).
Debt Relief Orders have some advantages over bankruptcy. For example, it costs £495 to enter bankruptcy, compared to just £90 for a Debt Relief Order.
However, it will remain on your credit history for six years, and will be on public record for 18 months. During this time you will be unable to get credit of more than £500.
Like all debt solutions, Debt Relief Orders have some restrictions. You should think carefully before deciding if it is right for you.
