Debt Relief Orders – value of assets
A condition of Debt Relief Orders is that the sum total of your assets does not £300. When you add up the value of your assets, there are some things you don’t need to include such as:
- household equipment and item ie furniture, bedding and clothing
- items like books, tools or equipment used for your job
- your motor vehicle – but only if it is worth less than £1,000
- a car which has been adapted because you have a physical disability.
Things which count as assets include any savings or shares you have, antiques and property. So if you own your property or have a mortgage on it, for example, it’s unlikely you would qualify for a DRO.
Also, if you are currently working but have a private or occupational pension fund, this counts towards the £300 limit. (If you have already retired and receive payments from your pension fund, this is viewed as income rather than an asset.)
If you have any queries regarding the value of your assets ask your authorised adviser, which would usually be a local Citizens Advice Bureau.