The New Updates on Debt Relief Orders
Posted: 14/05/2021 11:01
On the 10 May 2021 the Government published it's response to the Debt Relief Order (DRO) consultation on raising the threshold for the three monetary eligibility requirements that an individual must meet before being able to obtain a DRO.
Having taken account of all views expressed, the Government intends to lay legislation in Parliament at the beginning of June, to commence at the end of June, that will:
- Increase the threshold on the value of assets that a debtor can hold and be eligible to enter into a DRO from £1,000 to £2,000.
- Increase the value of a single motor vehicle that can be disregarded from the total value of assets from £1,000 to £2,000.
- Increase the level of surplus income received by the debtor before payments should be made to creditors from £50 to £75 per month.
- Increase the total debt allowable for a DRO from £20,000 to £30,000.
These proposed changes will mean that a greater number of debtors will be able to take advantage of the Debt Relief Orders, which are essentially a quicker and easier form of Bankruptcy.