Debt Relief Notice: Step 1
How do I assess my debts?
You will qualify for a Debt Relief Notice if your qualifying debts come to a total of €35,000 or less. You will need your most up to date bank statements, statements from credit card or catalogue companies, store cards and anyone else you owe money to. Don't forget to include any arrears on your rent or electricity or gas bills and money owing to friends or family.
How do I assess my assets?
You may qualify for a Debt Relief Notice if your assets are worth €400 or less. This amount doesn't include:
- the value of your car and you can have one car (or motorbike or van) worth €5,000 or less that you must need (if your car has been modified due to a disability, either yours or a member of your family, there is no limit to the value). This car cannot have paid for using a loan that you are including in your application.
- your household goods (such as your furniture, television, white goods and so on) of up to €6,000
- one item of jewellery worth €750 or less.
When thinking about how much your assets are worth, remember this is not the same as what you paid for them or what your insurance company would replace them for, it's the market value of your assets, that is the amount you would expect to get for them if you were to sell them second hand. The approved intermediary might ask you for a valuation from you for any of your assets.
How do I assess my Net Disposable Income?
You may qualify for a Debt Relief Notice if your income is €60 or less per month. To calculate your Net Disposable Income, you will need to know your monthly income from all sources (except Child Benefit which is not included) and then subtract the following:
- Taxes, PRSI, USC
- Reasonable Living Expenses for your household
- Payments to Excludable Debts
- Payments to Excluded Debts
- Levies on your income (such as the pension levy)
If what you have left is €60 or less your income qualifies for the Debt Relief Notice application
How do I assess my circumstances?
Some information on your circumstances will be necessary to see if you are eligible for a Debt Relief Notice. This information includes:
- whether you gave anything away for less than it was worth, and how that affected your ability to pay your debts
- whether you paid any of your creditors more than the rest and what effect that had on the rest of your debts
- whether you have ever had an insolvency arrangement before or any bankruptcy proceedings and so on.
We will go through these circumstances with you in more detail during the Eligibility Check.
- Don’t forget to include arrears on rent and electricity or gas bills when adding up your total debt
- If you were on a joint mortgage or savings account, check if your name is still on this account
- Don’t forget to include any money you get from your partner or adult working children still living with you
- Pull together all your bank statements and letters from each of your creditors
- Pull together your payslips / social welfare receipts
- Calculate how much you personally pay towards the household expenses