Can a Career Development Loan Be Included In a Debt Relief Order?

Debt Relief Orders

A debt relief order is a new concept introduced a few years ago in the United Kingdom.  It is similar to bankruptcy but more simple, quick and cheap.  This is ideal for people who have very few assets or no assets at all and for those who hardly have any disposable income.

Mode of Application

A person applying for a debt relief order does not have to attend court.  He can file the request online through a debt management company or if he wants to save on the fees, even a local Citizens Advice body.

What is the Effect of a Debt Relief Order?

Once the debt relief order is approved, no creditor can take action to recover his loan money from the applicant for a period of one year.

Can a Career Development Loan Be Included In a Debt Relief Order?

To know if a career development loan is covered under a debt relief order, one first needs to know the kind of debts that are included and the eligibility criteria.

The following Debts Can Be Included In a Debt Relief Order:

• Credit cards
• Unsecured loans
• Overdrafts
• Rent and utility bills
• Hire purchase amount due
• Credit purchases

Eligibility for Applying For Debt Relief Order

A person cannot apply for a debt relief order if

• He owns things whose value exceeds 300 pounds or has savings greater than that amount.
• He owns a vehicle costing more than 1000 pounds.
• He has a private pension fund with an amount greater than 300 pounds.

A career development loan is an unsecured loan.  As long as a person who has taken this loan fulfills the above mentioned criteria, he can include the loan in a debt relief order.