If you are preparing to apply for a Debt Relief Order, you probably want to know more about the Debt Relief Order application form questions.
We have put together a guide detailing the information you will need to supply on a Debt Relief Order application. Learn the key details and squash your application for angst here.
Debt Relief Orders – A Quick Recap
A Debt Relief Order is a type of debt solution suitable to people with debt below £20,000 and do not own a home. If you pay all your bills and essential expenses each month and have £50 or less to pay your debts, you will qualify for a Debt Relief Order.
Thus, it is aimed at people on low incomes or those with debts who are unemployed.
It works by preventing all creditors from requesting payment for a full year. If your finances have not improved by the end of this year, all your debts can be wiped.
You should know all there is to know about DROs before trying to get one!
Who Answers the Debt Relief Order Application Form Questions?
You must apply for a Debt Relief Order to get one. And you can’t apply yourself. It has to be completed through a qualified person known as an insolvency practitioner.
It is this intermediary that will fill out the application for you and answer the Debt Relief Order application questions.
But that doesn’t mean you shouldn’t know what questions are on the form, especially since you will have to provide accurate information to your insolvency practitioner to make the application.
Some people get worried about what the form will ask, but we can ease those worried with a breakdown of the information that must be provided.
A Breakdown of the Debt Relief Order Application Form Questions
The Debt Relief Order application form is divided into nine different categories. Below you will find these categories and what information will be asked.
Some categories will be quick and easy to answer, whereas others might have you digging through your files or reaching for a calculator. Your insolvency practitioner will be able to guide you best.
Category #1: Personal Details
The personal information section will cover the basics about you, including your name, previous names and contact information. You will also need to supply your National Insurance number and addresses over the last three years. Moreover, they will want to know about any dependents you have and your current relationship status.
Category #2: Insolvency History
The second section is all about your past debts and if you have utilised debt solutions previously. For example, have you ever had a Debt Management Plan or an IVA? If you have, you’ll need to gather information about these.
Category #3: Current and Previous Employment
You will then need to answer questions on your current employment if you have any. You will not need to provide past employment details unless you have been a sole trader or owned a limited company within the last three years.
Category #4: Your Valuable Assets
Having valuable assets may stop you from being granted a Debt Relief Order. Therefore, you will have to supply information about your assets, including:
- Your savings and investments balances
- Your cash savings not in a conventional bank account
- Any money owed to you (for example, compensation)
- Valuable business equipment you own
- Vehicles and property owned by you
- Other valuable items outside the scope of household essential items
Category #5: Pension Questions
If you have a pension, you will need to provide specifics about that pension, including a policy number and your pension provider. If you are already receiving money from your pension, this will need to be disclosed. Some workplaces automatically pay into a pension, and you will need to provide this information.
Category #6: Recent Asset Sales
Some debtors try to abuse the system and access a Debt Relief Order when they are not applicable. To do this, they will sell off their valuable assets for less than they are worth, often to friends or family.
But the Debt Relief Order application form has this section to identify these people. It is a section that asks about the recent sale of your assets, how much they were sold for in comparison to the market value and the personal details of the people that bought these assets from you.
Category #7: Preferential Payments
You must also disclose something known as preferential payments. This is when you have made debt repayments to a creditor (or even a family member) without paying any of your debt off owed to another creditor. These questions are seeking to know whether one creditor has received more from you than another.
Category #8: Creditor Information
You will then provide extensive information on all the debts owed. If you owe multiple debts to the same creditor then you will need to list these individually. You can even add debts owed outside of the UK as long as the amount you claim to owe is accurately converted into GBP.
When calculating your debts, you should add up any interest you owe or any penalties you received. The form wants to know about all your debt with nothing omitted.
Category #9: Your Income and Expenses
The lasts section of the Debt Relief Order application form will ask for information regarding your income and expenditure each month.
You will need to make sure you include all income, including employment, tax benefits and any savings interest. Similarly, you need to disclose all your expenses including rent, bills, food and so on.
Interestingly, you can include children’s pocket money, hairdressing appointments and any school trip fees in your expenses.
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