Can I qualify for Debt relief?
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Posted: 6th June 2024
Courtney Evans
Last Updated 4th September 2024
When you find yourself in debt and unable to pay it back you could qualify for credit card forgiveness otherwise called, debt relief.
This is when the creditor pardons a debtor from some or all of the outstanding debt.
A Debt Relief Order (DRO)
You can apply for a DRO for free and talk to an advisor to find out if you qualify and if you could receive debt forgiveness.
You could qualify if…
- You owe £30,000 or less OR if you owe £50,000 or less from June 28
- You don’t own a home
- You don’t have other assets or valuable items, car, property
- You don’t have much spare income, no more than £75 after paying household expenses.
A DRO usually lasts a year after which time your debts will be written off unless your situation improves.
A DRO could help you with payment plans that work around your situation or could help you get your debt forgiven.
Debts covered by DRO
- Credit Card
- Overdrafts
- Loans
- Benefits overpayments
- Arrears with rent, utility bills, council tax and income tax
- Bills for services such as, vets or solicitors.
- Business debts.
If you are struggling to pay off your debt then find out if you qualify.