Residency conditions that must be met in a Debt Relief Order application

A debt adviser recently had a Debt Relief Order case that initially seemed straightforward as the client met all the relevant criteria for this option.

However, the client disclosed that she had recently returned from Canada where she had resided for more than two years.

How We Helped

The adviser queried with Advice NI’s Specialist Support adviser if the client would still meet the criteria to complete the DRO application because they hadn’t been present in the UK for the last three years?

The Specialist Support adviser confirmed the client would indeed meet the qualifying criteria, if she was present in Northern Ireland on the date of the application.

The conditions which must be met for making a Debt Relief Order in Northern Ireland are listed in Part 1 of Schedule 2ZA of the Insolvency (Northern Ireland) Order 1989, as stated below;

(1) The debtor—

(a)is domiciled in Northern Ireland on the application date; or

(b)at any time in the 3 years immediately preceding that date—

(i)was ordinarily resident, or had a place of residence, in Northern Ireland; or

(ii)carried on business in Northern Ireland.

(2) The reference in sub-paragraph (1)(b)(ii) to the debtor carrying on business includes—

(a)the carrying on of business by a firm or partnership of which he is a member;

(b)the carrying on of business by an agent or manager for him or for such a firm or partnership

The Outcome

Following assistance from Specialist Support, the debt adviser was able to progress the clients Debt Relief Order and submit the application to the Insolvency Service as a registered Intermediary.

Advice NI’s Specialist Support Service operates Tuesday to Thursday from 8am to 5.30pm and Friday from 8am to 4.30pm via email and telephone 02890 645919.