New measures to help vulnerable people in debt
Industry News | 11/05/21
The Insolvency Service announced proposed changes to the criteria for accessing a Debt Relief Order (DRO). The changes follow a consultation by the Insolvency Service earlier this year.
The changes to the criteria 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;
• the value of a single motor vehicle that can be disregarded from the total value of assets – from £1,000 to £2,000;
• the level of surplus income received by the debtor before payments should be made to creditors – from £50 to £75 per month; and
• Increase the total debt allowable for a DRO – from £20,000 to £30,000.
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