Debt Relief Order Changes

	Do you live in Scotland? As Scotland has its own legal system, distinct from that of England and Wales, laws relating to bankruptcy are different too. In Scotland, personal bankruptcy is known as sequestration.

More news Bailiffs to get more powers but not much needed regulation Citizens Advice warns Citizens Advice Bureau reports sharp rise in debt problems Record number of people going bust - and it's set to get worse More than a million householders use credit card borrowing to pay their mortgage or rent Number of CCJs issued hits ten year high Number of Scots going bankrupt hits record high	Changes to Debt Relief Orders will help more people struggling with debt Proposed reforms that will allow more people struggling with debt to enter into a Debt Relief Order (DRO) are to be implemented by the Government. To use the DRO procedure, individuals must meet a strict eligibility criteria of having assets valued at less than £300, debts of no more than £15,000 and surplus income of less than £50 per month. Currently, if someone has a pension that is worth over £300, they are not eligible to apply - even if the pension is not receivable for many years. The changes will mean that approved pensions are no longer considered as assets, allowing more debtors to access to the DRO procedure. "This is good news for some of the most needy and vulnerable members of society who find themselves in inescapable financial difficulties," said Edward Davey, Minister for Employment Relations, Consumer and Postal Affairs. "It is an important change. To deny people access to Debt Relief Orders because they have accrued some rights to a pension that they cannot yet access is simply unfair." 9th November 2010

More news

Bailiffs to get more powers but not much needed regulation Citizens Advice warns

Citizens Advice Bureau reports sharp rise in debt problems

Record number of people going bust - and it's set to get worse

More than a million householders use credit card borrowing to pay their mortgage or rent

Number of CCJs issued hits ten year high

Number of Scots going bankrupt hits record high

Changes to Debt Relief Orders will help more people struggling with debt

Proposed reforms that will allow more people struggling with debt to enter into a Debt Relief Order (DRO) are to be implemented by the Government.

To use the DRO procedure, individuals must meet a strict eligibility criteria of having assets valued at less than £300, debts of no more than £15,000 and surplus income of less than £50 per month.

Currently, if someone has a pension that is worth over £300, they are not eligible to apply - even if the pension is not receivable for many years. The changes will mean that approved pensions are no longer considered as assets, allowing more debtors to access to the DRO procedure.

"This is good news for some of the most needy and vulnerable members of society who find themselves in inescapable financial difficulties," said Edward Davey, Minister for Employment Relations, Consumer and Postal Affairs. "It is an important change. To deny people access to Debt Relief Orders because they have accrued some rights to a pension that they cannot yet access is simply unfair."

9th November 2010

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