More People To Be Eligible For Debt Relief Orders

The Government plans to make more people eligible to apply for a Debt Relief Order (DRO) providing much needed additional support for those with debt problems.

A Debt Relief Order is a new, lower cost option for people to avoid bankruptcy.

Making the announcement today, Business Minister Ian Lucas said “Debt Relief Orders help people who would otherwise be trapped in poverty to get back on their feet. Following representations from independent money advisers, I’m proposing a common sense change to ensure that vulnerable people with a very small pension pot are treated fairly. The Government will consult on this change shortly.”

The issue is that currently those that have a pension over £300 are not eligible to apply for a Debt Relief Order.

Changes will also be made to the insolvency fees structure to ensure more cash is recovered earlier enabling the cost of the arrangement to be shared by the debtor and creditors.

The new charges will come into place from 6 April 2010 and details of the fees are available at www.insolvency.gov.uk

If you are facing debt problems then it might be time to get debt advice and take steps to address the debt issues sooner rather than later. There are a range of debt options available, including an Individual Voluntary Agreement (IVA) or Debt Relief Order or if need be bankruptcy.