A NEW “write-off” debt scheme has been introduced in Northern Ireland to help people burdened with bills they have no realistic chance of paying.

The debt relief scheme, which is a first for the North, aims to deliver a non-court solution for people who have no way of paying their creditors or cannot hope to pay their debts within a reasonable timeframe.

In certain cases where there is no alternative some people could find that all their debts may be written off.

To qualify for the scheme, an individual’s total unsecured liabilities must not be more than £15,000 (€16,600).

They must show that they have no surplus income which they could use to pay or come to an arrangement with their creditors.

The debt relief scheme will operate by allowing individuals to apply to an official receiver, who is part of the UK’s insolvency service, for a debt relief order.

Once an individual receives this order, it will protect them against action by any creditor for a year.

At the end of the 12-month period, their liability to pay debts covered by the order will be cancelled.

The North’s Minister of Enterprise, Arlene Foster, said she believed the scheme would give the least well-off in society an affordable way of freeing themselves from debt.

“The administration of the scheme will be relatively straightforward and cost-effective because there will be no need for a court hearing,” she said.

“It is estimated that up to 1,000 could make use of the scheme each year.”

Debt advisers will be appointed to assess a debtor’s eligibility and to verify their financial background.

Although the scheme aims to give people struggling with debt a way out, anyone who wants to apply for it will have to pay an upfront fee of £90.

However, the North’s Department of Enterprise said this was “a lot less” than the £345 deposit which must be paid to petition the court for bankruptcy.