I have not . could you chose it Essay Example | Topics and Well Written Essays - 2750 words

I have not . could you chose it - Essay Example The determination of insolvency options is not dependent on the type of purchases made. The type of purchases or indebtedness is irrelevant at this time. The law does not differentiate as to type of debts.1 Therefore, neither I nor anybody is in a position to do so. This is sought to be rectified by the new Act of 2007 whose provisions are to take effect in 2010. Act 2007 specifies the types of indebtedness to be included in the specific Insolvency Option. It is dependent upon the amount of benefits she receives; how much is left over after tax deductions and normal household expenses as disposable income; and, the amount of her indebtedness.2 Since these factors were not clearly indicated in the facts of the case, I will discuss all insolvency options. After that a listing of the possible range of benefits she is receiving to determine what option will suit her situation the best will be made based on people under similar situations. Finally the best possible option will be recommen ded. The Debt Relief Order (DRO) is aimed at providing debt relief.3 The debtor must obtain the services of an approved intermediary. This is a skilled debt adviser who helps a debtor apply with the Insolvency Service for a DRO. Courts do not take cognizance of this. This order lasts for 12 months. Creditors explicitly named in the order are not allowed to collect from the debtor or file any action to recover their money. After the 12 month period and the circumstances of the debtor do not change, he will be freed from all debts mentioned in the order. To qualify for a DRO, the debtor must not be involved in another formal insolvency procedure at the time of application and has not been a subject of a DRO within the last 6 years. He must be living or doing business in England for the last 3 years. He can own a car with a maximum value of  £1000.00 and assets not exceeding  £300. His indebtedness must be less than