A question about : DRO Limit to be increased to Ј20,000
https://www.gov.uk/government/news/i...h-problem-debt
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Changes announced today include: Bankruptcy creditor petition level to be increased to Ј5,000 from Ј750 DRO limits raised to Ј20,000 enabling some 3,600 more people with low level debt to use DROs instead of the more expensive and onerous bankruptcy process DRO asset limits raised to Ј1,000, plus a vehicle (worth not more than Ј1,000) The maximum surplus income a person can have to qualify for a DRO will remain at Ј50 per month A light touch monitoring of the intermediaries to maintain consistency. |
https://www.independent.co.uk/money/b...s-9979919.html
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There's good news for people struggling in debt - the minimum amount for which you can be forced into bankruptcy is being raised from Ј750 to Ј5,000. The limit was last set in 1986 and the new rules will come into effect in October, Business Minister Jo Swinson announced this morning.
At the same time the maximum amount of debt that can be covered by Debt Relief Orders - the low-cost alternative to bankruptcy - will increase from Ј15,000 to Ј20,000. Jo Swinson said: Struggling with unresolvable debt can cause immense stress for families. These changes will ensure that our debt relief schemes are updated so that they still meet their original goal of providing access to those who need them. They also ensure that bankruptcy, which has the most significant consequences, is reserved for those with sizeable debts. The move marks the culmination of a long campaign by debt charities and insolvency firms and follows a call for evidence launched by the Minister last August. |
Best answers:
- Overall, a step in the right direction I think.
Very glad that the car valuation has stayed at Ј1K, although I know some advice agencies wanted an increase on that to Ј2k. Seems some form of common sense may have finally broken out, although experience tells me not to expect it to last too long. - My total overall level of debt is Ј11,161.
Good news for me!! - Changes announced today include:
•Bankruptcy creditor petition level to be increased to Ј5,000 from Ј750
•DRO limits raised to Ј20,000 enabling some 3,600 more people with low level debt to use DROs instead of the more expensive and onerous bankruptcy process
•DRO asset limits raised to Ј1,000, plus a vehicle (worth not more than Ј1,000)
•The maximum surplus income a person can have to qualify for a DRO will remain at Ј50 per month
•A light touch monitoring of the intermediaries to maintain consistency.
https://www.gov.uk/government/news/i...h-problem-debt
https://www.parliament.uk/documents/c...Insolvency.pdf
Comes into effect 1 October
Why this needs an 8-month lead I don't know. That's my main disappointment as I hoped we would get some changes for April.
And I was hoping for a bigger increase in the threshold, but 5k extra is welcome - Have yet to read the consultation responses, but maybe that sheds some light?
https://www.gov.uk/government/consul...petition-limit
original consultation here with the data presented to respondents here: https://www.gov.uk/government/upload..._limits_v3.pdf - When is this to be from? Is it now Ј20K
- No.
The changes won't come in until October, assuming parliament gives them the OK.
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