The £90 fee to apply for a debt relief order is being scrapped for applications from 6th April 2024.
A debt relief order (DRO) may be a good solution for a client to deal with debts. A DRO stops most creditors from taking further action against.
Some of the qualifying conditions for a client are-
be unable to pay debts;
have total debts of £30,000(£50,000 from 28/6/2024) or less at the date the application is approved by the offcial receiver;
have assets worth a total of £2,000 or less;
not have a car or motor bike worth £2,000(£4,000 from 28/6/2024) or more (unless it has been adapted because they have a disability);
have £75 a month or less spare income after normal household expenses are taken into account;
live in England or Wales (or have lived or run a business in England or Wales in the last three years):
not have had a DRO in the last six years (although a client could still qualify if their DRO was cancelled).
Not be already be bankrupt, in a individual voluntary arrangement (IVA), subject to a bankruptcy restrictions order/ undertaking/ or a debt relief restrictions order/ undertaking; or have a bankruptcy petition pending
unless a court has referred the client for a DRO
A client can only apply for a DRO through an ‘approved intermediary. A factsheet on line is available here from the National Debt line