Today, Business Minister Jo Swinson has announced changes to make it easier for the financially vulnerable to manage problem personal debt.
This follows CAP’s campaign to raise the limit of debt set in order to access a Debt Relief Order, as currently more than a third of our clients, many of whom are vulnerable, are too poor to go bankrupt.
CAP’s CEO Matt Barlow said: ‘The limit of £15,000 of debt was set in 2009, so we’re delighted the Insolvency Service have brought this bang up-to-date and we’re pleased to hear it will be reviewed again in 2017. We had campaigned for the limit to rise to £30,000, which would have seen more than half of our clients able to afford this debt solution. However, the line had to be drawn somewhere and £20,000 is a good start.’
You can read the Insolvency Service’s full article here and our report ‘Too poor to go bankrupt’ here.