The Debt Relief Certificate applies to persons whose income is low, who have virtually no assets and whose personal debts are at a quite modest level. Provided debts do not exceed €20,000, the value of assets do not exceed €400 (apart from a car of maximum value €1,200) and monthly disposable income does not exceed €60, then the debtor may be eligible for a Debt Relief Certificate for which they can apply with the help of an approved intermediary.
The total cost of applying for a DRC is €90.
If an applicant meets the required criteria for the Debt Relief Certificate they will see all of their debts frozen for one year. If the applicant’s circumstances have not materially changed and he or she is still unable to pay their debts after one year, debts that qualify are totally written off.
At least six years must elapse before a debtor is allowed to apply for a second Debt Relief Certificate and debtors are allowed only two Debt Relief Certificates in their lifetime. This solution will not be available to homeowners.