What are classed as assets for a DRO?
Examples of assets include:
- Property
- Antiques
- Shares
- Savings
- Money other people owe you
- Jewellery
- Computers
These assets are valued by how much you could get if they are re-sold in their current condition, not what you paid for them.
Which assets are not included in a DRO?
The official receiver dealing with your DRO will not include certain things when adding up the value of your assets.
These items include:
- Essential household items like bedding, clothing and furniture
- Tools or other equipment that are essential for your job
Do you qualify for a debt relief order?
Will I lose my car if I have a DRO?
To qualify for a DRO, your total assets cannot be worth more than £2,000.
You can own one domestic vehicle worth up to £4,000 on top of this.
You must give details of your vehicle including the:
- Make
- Model
- Registration number
The value will be checked.
You need valuations from two independent motor dealers if it seems to be worth more than the limit.
The limits do not apply to a vehicle adapted to help with a physical disability.
Business Vehicles
A vehicle used for business purposes only is counted as part of the total assets you can have.
This means you cannot get a DRO if your business vehicle is worth more than the limit in your country.
Cars on hire purchase (HP)
The finance company owns the car if:
- You still make payments
- This means it does not count as an asset
You own the car if:
- You have paid off the finance
- The HP ends during your DRO
- This means your DRO could be cancelled if your car is worth more than the car asset limit
Can I get a DRO if I am a homeowner?
You cannot apply for a DRO if you own your home. Even if it is in negative equity.
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