Posted May 10, 2021
The Money Advice Trust, the charity that runs National Debtline, has welcomed the Insolvency Service’s confirmation of improvements to Debt Relief Orders (DROs) and a new Government commitment to conduct a wider call for evidence on the personal insolvency landscape.
“These welcome changes will significantly improve access to Debt Relief Orders (DROs) for people in financial difficulty. Along with the launch of Breathing Space and the forthcoming introduction of Statutory Debt Repayment Plans, we are making real progress towards the ultimate goal of ensuring that everyone has access to a safe route out of debt.
“The increase in the debt limit for DROs to £30,000 is welcome, as is the increase in the amount of disposable income someone can have to qualify - although we are disappointed that the Government will only increase this to £75, rather than the £100 initially proposed.
“We are pleased to see that the Insolvency Service has listened to feedback and increased the limits for motor vehicle assets to £2,000 – a change we have long called for. Taken together, these measures will make a real difference for many people who contact us for support with their debts, who may now qualify for a DRO.
“In the wake of Covid-19, it’s more important than ever that the Government takes a wider look at the existing debt options landscape to ensure no one is allowed to fall through the cracks in a framework that has evolved in a piecemeal fashion over several decades. We therefore welcome today’s new commitment to a call for evidence on the personal insolvency landscape and urge the Government to bring this forward as soon as possible.”