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Debt Advice Forum Forums Debt Solutions Debt Relief Order Can i do a debt relief order

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    I have £12,540 of debt and i’ve been told i am suitable to enter a debt relief order because i have no assets but i’ve do work full time and have a low expenditure. Can i increase my expenditure to enter the debt solution?


    Hi Willie,

    A debt relief order might be an extreme debt solution based on your circumstances and shouldn’t be entered lightly.

    Because you are working there is the possibly you could be suitable for IVA, assuming of course you live in England.

    While both debt solutions will have a negative impact on your credit rating you won’t have to worry about you expenditure as much.

    You make monthly contributions to your debt over a 5 year period and the remainder is written off.

    Most people who work full time will either have more than the allowed £50 disposable income or will have a high expenditure.



    But with a debt relief order i won’t have to pay anything back is that correct?


    You have to  pay a one-off fee of £90 to have your application considered but if it’s rejected you won’t receive the money back. That’s one of the reasons why you’ll need a qualified money advisor to help you with the application.

    If however the money advisor feels your expenditure is high or in any way excessive they are unlikely to advise you on applying for the DRO. At which point a IVA or debt management plan may be a better debt solution.

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