DROs were introduced in 2009 as a simpler alternative to bankruptcy for people with few assets and no realistic chance of paying much towards their debts:

No monthly payments are made and your debts are wiped out at the end of a year;

the £90 DRO fee is much lower than the £680 bankruptcy fee which helps the people in debt;

the Insolvency Service benefits as its costs of administering a DRO are much lower than a bankruptcy case.

Whilst we will provide you with advice upon all options applicable to your specific circumstances we understand that insolvency is often a preferred choice if all other avenues have been exhausted.

The Insolvency Service has announced that new limits that will be introduced for Debt Relief Orders (DROs) from 29 June 2021.

These are:

• the total debt allowable in a DRO goes up from £20,000 to £30,000.
• the level of “surplus income” after paying your bills and everyday expenses has been increased from £50 to £75 per month.
• an increase in the general assets you can have from £1,000 to £2,000. (Therefore, still not designed for homeowners)
• an increase in the value of a car from £1,000 to £2,000 (this is in addition to the general assets you can have.)

If you are having difficulties paying your bills and would benefit for seeking free, independent, non judgemental and impartial advice we would urge you to get in touch with our Money Advice team who can talk you through all possible debt solutions and help you achieve the best outcome in your situation.

Likewise, if you previously considered a DRO but were not eligible and now feel you wish to re-visit this option due to the limit increases

Phone us on: 01983 823898 ext 2825

or

email us via [email protected]