Author Topic: Reform of Debt Relief Orders  (Read 1236 times)

James Falla

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Reform of Debt Relief Orders
« on: Nov 24, 2010, 04:31:22 PM »
I thought that some of the users of this forum might find this information useful. The government has announced that it proposes to ammend the rules surrounding debt relief orders (DRO) to allow people with pensions to take advantage of this type of debt solution.
 
Previously if you had assets of more than £300 including your pension (or a car worth up to £1000) you would not be eligable for a DRO.
 
There is no news yet about when the changes might come into effect. However, this is certainly a step in the right direction.
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James Falla

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Re: Reform of Debt Relief Orders
« Reply #1 on: Dec 03, 2010, 10:35:47 AM »
An update on the Debt Relief Order (DRO) changes:
 
The DRO rules will be changed as of 6th April 2011. The change will mean that anyone with an approved pension will still be able to carry out a DRO as long as they meet the other criteria:
 
Debts of less than £15,000
Disposable income of less than £50 a month
Personal assets worth less than £300 (other than a car worth up to £1000 and now a pension)

The pension must be approved as defined under Section 11 (2) of the Welfare Reform and Pensions Act 1999. This means that the majority of occupational and personal pension schemes will now be allowed if someone undertakes a DRO.

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