Debt Relief Orders And Assets That Are Affected | Finance News ...

A DRO or debt relief order should only be considered for serious financial matters. However, this kind of order can be a better alternative to bankruptcy in some cases. As long your total debts are not over 15000 pounds and you have a relatively low income, you may qualify. When you are considering a DRO, many of your assets will be included and here is a more detailed look at debt relief orders and assets, as they are affected.

DRO and Asset Requirements

All of your possessions cannot be worth more than 300 pounds or you cannot take out a DRO. If your vehicle is worth more than 1000 pounds, you are not qualified either. This means that you cannot have a great many belongings or things of value and still qualify for a DRO.

Things That Count as Assets

A great many of the things that you own will be considered, for DRO qualification. For example, you may keep a savings account, but it will be included in your net worth. Also included are shares such as stocks, bonds, and expensive items such as antique furniture and jewelry. If you own any real estate, it will most likely disqualify you, as it counts as a qualifying asset.

Things Not Counted as an Asset

You will not have to claim everything that you own for a DRO. For example, bedding does not count and this includes items such as blankets, pillows, and beds. Household furnishings such as couches, lamps, tables, and chairs, are also not considered.

Employment Related Possessions

If you have a lot of books that are job related, there is no need to worry. This is also true for tools that you need for work. This does not matter if you work for yourself or for someone else. As long as your car is not worth more than 1000 pounds, it is considered a necessity, as you need it to get back and forth to work.

Considerations for the Handicapped

You or a family member may be disabled and you will be given handicapped consideration. For example, all of your equipment such as wheelchairs and oxygen supplies will not be considered in a debt relief order. You may have a vehicle that has special equipment and it also does not count, no matter what the value is.

Benefits Affected by DRO

You may be retired and on benefits and this money does not count toward the 300 pound maximum. Pension money is counted as income and not an asset. If you have monthly debts automatically taken from your pension, your debt relief order may stop them. However, you should consult a financial professional to be certain.

Summation

If you have limited assets and do not earn much money each month, a debt relief order may be better for you than bankruptcy. It is important to have a clear understanding of debt relief orders and assets. Some possessions will be added to your net worth, while others will not. You can get help with these matters from a finance professional or the Citizens Advice Bureau.

Learn the information you will need to attain a Debt Relief Order easily and quickly! You can get the simple steps to get Debt Relief Orders and assets that must be considered before you begin the qualification process.

Source: http://thefinancenewstoday.com/2012/03/17/debt-relief-orders-and-assets-that-are-affected/

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