Debt Relief Order (DRO): Latest News
Fee Waiver for Debt Relief Orders
As from 06 April 2024, individuals on the lowest of incomes can seek Debt Relief Orders (DRO) without any charge, as regulations undergo revision. Formerly, applying for a DRO incurred a £90 fee, which many debt-ridden individuals found prohibitive, according to charities. However, effective April 6th, the applications for many people will be free in England and Wales.
Other Changes to Debt Relief Orders
Previously DROs are designed for individuals whose debts didn’t exceed £30,000 – this threshold is set to increase to £50,000 starting 28th June 2024.
Applicants must collaborate with a debt solutions provider and have no more than £75 remaining each month after covering essential expenses.
Individuals applying for Debt Relief Orders (DROs) previously could possess a car valued up to £2,000 – this limit will increase to £4,000 from 28th June 2024.
Upon acceptance of your application, certain debts will be temporarily suspended for one year before being written off.
In Northern Ireland, DROs still require a £90 fee and have stricter eligibility criteria. However, the Northern Ireland government indicates that similar changes are under consideration.
In Scotland, the equivalent scheme is known as a Minimal Asset Process. The fee for this was eliminated in 2020, and the Scottish Government plans to introduce broader eligibility criteria to the Scottish Parliament soon.
Further reading on debt releif order changes can be found on the BBC. There is also information here on other debt solutions.
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