Category: Services

Debt relief orders have become quite a popular method of dealing with problematic financial situations in recent years. In the UK, as well as in many other countries around the world, it has become common for someone who is experiencing financial difficulty to apply for such an order and receive a quick response. The purpose of this type of debt relief order is to enable the person to pay back money that the person owes to creditors. This process has been made much simpler by the introduction of a new loan management program, which has been developed by loan advice charity, Citizens Advice Bureau (CAB). In the UK, as well as in most parts of the world, there are two types of debt relief orders that can be made. The first type is a full-blown bankruptcy procedure, in which case the court authorizes the liquidation of a company or business and all its assets. The court decides the value of the company's assets and decides how they should be divided among the creditors. This is often a very lengthy and expensive process for those involved. The second type of relief order involves the negotiation of a new repayment plan with the creditors. Under this type, the creditors agree to accept a repayment amount that is lower than the original debt owed.