New measures to help vulnerable people in problem debt

first_imgNew measures to help vulnerable people in problem debt More people will be able to access the debt solution, giving them a fresh start, as a result of the changes announced today, which will come into force at the end of June.The changes to DRO eligibility criteria will see the level of debt at which people can apply for a DRO increase from £20,000 to £30,000. It is expected that over 13,000 more people may use DROs in the next 12 months compared to 2019, an increase of nearly 50 per cent.Minister for Corporate Responsibility Lord Callanan said:Debt Relief Orders help those with problem debt get to grips with their finances, these changes will enable more people experiencing problem debt to get a fresh start.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.Increase the value of a single motor vehicle that can be disregarded from the total value of assets from £1,000 to £2,000.Increase the level of surplus income received by the debtor before payments should be made to creditors from £50 to £75 per month.Increase the total debt allowable for a DRO from £20,000 to £30,000.The new criteria will follow a consultation earlier in the year. The changes are due to come into effect on 29 June to coincide with the end of the first 60 days of the Government’s Breathing Space scheme, which began on 4 May 2021.Debt Relief Orders were introduced in 2009 and are aimed at individuals with relatively low levels of unmanageable debt who have nothing to offer their creditors, such as assets or disposable income, and for whom bankruptcy would be a disproportionate response. A DRO sees debt repayments and interest frozen, while creditors are unable to pursue debtors for a 12-month period, after which the debts are written off.NotesDROs apply to England and Wales only (personal insolvency is devolved to Scotland and Northern Ireland.) /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:corporate, Effect, Force, Government, Ireland, Minister, Scotland, space, UK, UK Government, vehiclelast_img

Leave a Reply

Your email address will not be published. Required fields are marked *