As announced by the Chancellor at the Spring Budget, the Government is making changes to Debt Relief Orders (DROs) to ensure that people in problem debt get a fresh start with their finances and access the support they need.
As a result, the Government is introducing the following changes to DROs in England and Wales :
- From 6 April, the £90 administration fee will be permanently removed.
- From 28 June 2024, the maximum amount of debt that an individual entering a DRO can hold will be increased from £30,000 to £50,000. In addition, the value of single motor vehicle that can be disregarded from the total value of assets an individual seeking a DRO is permitted to own, will also be increased from £2,000 to £4,000.
- Until 6 April, individuals seeking to enter into a DRO should continue to pay the £90 fee and, until 28 June, applicants must be assessed against the existing eligibility criteria.
There are other debt options available to individuals such as the Breathing Space scheme, which provides a temporary period of protections against creditor enforcement action and most interest, fees, and charges. To apply, an individual would need to be assessed and deemed eligible by a regulated debt adviser.