Goverment increase the threshold to £50k and remove the £90 fee from 6th April 2024
In an effort to assist households grappling with significant debt issues, the UK government has announced an enhancement to the accessibility of Debt Relief Orders (DROs).
Designed as a personal insolvency solution for those unable to meet their debt obligations, DROs provide a pathway to financial recovery. As part of the Spring Budget announcements, from 6 April 2024, the government will eliminate the £90 administration fee previously associated with applying for a DRO. Furthermore, significant adjustments are set to be introduced to expand the eligibility criteria for DROs. From 28 June 2024, the maximum allowable debt limit for applicants will be increased from £30,000 to £50,000. In addition, the value of a motor vehicle an individual can own whilst still qualifying for a DRO will be raised from £2,000 to £4,000.
These modifications are part of a broader initiative to make debt relief more accessible to those in need, supported by the government’s unprecedented investment in debt advisory services across England. This initiative underscores the government’s commitment to providing robust support systems for individuals seeking to navigate their way out of financial distress and start anew with their financial affairs.
