What debts are Excluded from a Debt Relief Order?

Certain debts are excluded from a Debt Relief Order

These include –

1. Student Loans – These have tobe repaid under the terms of the agreement.
2. Magistrates Court Fines
3. Child Support – any debts undera maintenance order made in regard to the Child Support Act 1991
4. Criminal Fine

Other Debt Solutions in the UK

Money Advice Direct’s debt advisers understand indebted people in depth, to help them through their debt problems. The debt solutions offered range from basic advice, such as simply destroying credit cards and curbing unnecessary expenditure, to the following solutions:

1. Consolidation loan – This is a singleloan obtained to pay off multiple loans. A consolidated loan may offer a lower monthly payment but a longer repayment period.
2. Re-mortgage- Mortgaging a propertyyou already own, usually replacing an existing mortgage. You can remortgage to obtain lower monthly payments, or if you have sufficient equity in youproperty, to raise money for a number of purposes.
3. Informaldebt arrangements - Where is not possible to enter into formal insolvency proceedings such as anIndividual Voluntary Arrangement  or a Bankruptcy order  it is sometimes worth looking at an Informal Arrangement. In the UK if you are in debt but your disposable income is very minimal, i.e. under £50 or even £100you may need to consider a special non-governmental scheme called an informal arrangement.
4. IndividualVoluntary Arrangement (IVA) - An IVA is an alternative to bankruptcy; a person can enter into anIVA and pay the maximum possible amount to the creditors to repay their debts.These are seen as a preferable option than Bankruptcy.
5. Bankruptcy- Bankruptcy is anoption that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order. Although bankruptcy has a bad stigma and is publicly advertised, it should always be considered when dealing with individual insolvency cases. Please note that if your are ever faced with the prospect of bankruptcy you should look at alternatives as soon as possible such as the IndividualVoluntary Arrangement procedure (IVA).

If you would like more information please contact Money Advice Direct on  0800 074 6918 or fill in our form by clicking here.

If you are unsure as to whether an Debt Relief Order is the best way to solve your debt problems please call us on 0800 074 6918. If you wish to discuss the Debt Relief Order procedure and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.

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Listed below are some of the frequently asked questions relating to Debt Relief Orders

• Introduction to Debt Relief Orders
• What is a Debt Relief Order?
• What debts can be included in a Debt Relief Order?
• What debts are excluded from a DebtRelief Order?
• Is my Hire Purchase affected by a Debt Relief Order?
• Is my Motability Car Scheme affected by a Debt Relief Order?
• Who can apply for a Debt Relief Order?
• What is a Competent Authority?
• What is an Approved Intermediary?
• What is the cost of a Debt Relief Order?
• Why should I consider a Debt Relief Order rather than Bankruptcy?
• How do I apply for a Debt Relief Order?
• Who decides if my Debt Relief Order is approved?
• What if my circumstances change whilst I am in a Debt Relief Order?
• How will my creditors know I am in a Debt Relief Order?
• What happens to interest and charges if I am in a Debt Relief Order?
• Rent Arrears and Debt Relief Order's
• Will I be allowed a reasonable standard of living?
• Debt Relief Order Case Study 1
• Debt Relief Order Case Study 2
• Debts incurred after the granting of a Debt Relief Order
• What are the restrictions of a Debt Relief Order?
• What happens if you are dishonest before or during a Debt Relief Order?
• How will a Debt Relief Order affect you?
• What debts are not covered by a Debt Relief Order?
• Will a Debt Relief Order (DRO) affect my council tenancy as I am in debt?
• Can I apply to the Police if I have a Debt Relief Order (DRO)?
• Does getting a job after getting a Debt Relief Order (DRO) affect me, because I am seriously in debt?