Christians Against Poverty report published: Simplify the Solution to Problem Debt

Statistics | 09/02/21

Christians Against Poverty (CAP) have published a new report outlining how to simplify the solution to problem debt. This is based on their experience as one of twelve Competent Authorities that provide access to the Debt Relief Order (DRO) – a form of insolvency designed to give people with low incomes and no assets a route to debt relief where no others exist.

At present, DROs are not effectively serving those they were designed for. More than half (53%) of CAP clients who apply for bankruptcy are now displaced from a DRO. Despite being the target group for a DRO, they must pay an additional £590 to access a bankruptcy instead, because they fail just one of the eligibility criteria.