Topic: Debt Relief Order & Shared Owners

[Blueshirt]

Hi,
I am long term sick, in receipt of welfare benefit. I have used up all my savings to survive over the last 3 years since I became too ill to work. I have no assets left to sell.
I have a credit card debt totalling £6,000 and a personal loan where I owe £4,000. (They were less but I haven't been able to pay anything for 3 years.
I am a shared owner (jointly) of the flat I live in.
Is a DRO available to me, or does my shared owner status preclude it?

[Lisa Thomas]

Hi  I suspect the property interest will prevent you from applying for a DRO.


There is a link with the criteria but I cannot attach links on this forum so Google Debt Relief Order and click on the government page.


If you do not fit the criteria then Bankruptcy might be the next best option for you.  You can apply for this online at a cost of £655.


Best to take advice from the CAB or an INsolvency practitioner before you apply for any formal insolvency option to make sure it is the right one for you.


Some queries like how much is the equity in your property?  Could the joint owner make an offer to buy out your interest which you could use to pay off your creditors?


Perhaps an IVA might be suitable.

[Lisa Thomas]

but I couldn't advise without knowing your full financial picture.