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Happy birthday to the cheapest and newest form of insolvency

calendar05 April 2019

Happy birthday to the cheapest and newest form of insolvency

An amazing 10,000 CAP clients have found freedom from debt in the first decade since the Debt Relief Order (DRO) was introduced.

Before DROs, there were fewer solutions for unmanageable debt and trying to save for the £705* bankruptcy fee was beyond reach for many of our most vulnerable clients.

This was the situation until 6 April 2009, when the Government introduced the £90 DRO, specifically designed to help those on a low income.

Fallon, a client who became debt free with a DRO in 2017, described the impact on her life, saying it was incredibly welcome news.

’We received a letter that explained about the DRO and a card from CAP to say congratulations. It was a major weight lifting off my shoulders. I felt like I could actually breathe. Finally, it’s just gone! Since I went debt free, I haven’t ever wanted to get back in debt again.’

Her feelings are typical and the vast majority stay debt free for years afterwards.

Our award winning team of approved intermediaries is led by Insolvency Team Manager - Mark Cowley, who says, 'It’s really encouraging to be able to offer hope for the hopeless and the beauty of DROs is that they work. Our research shows that 91% of our clients who have had a DRO are debt free for the long term so it has really helped transform their situation.’

Here's to another 10 years of supporting people on their journey to freedom from debt.

If you're in problem debt, there are many ways of getting your finances sorted. See what we're doing where you are and how we can help here.

*£705 was the bankruptcy fee in England and Wales in 2009. The current fee is £680.

How do you get a DRO?

A DRO is granted as long as you have all of the following:

  • No more than £20,000 worth of debt
  • A low income (no more than £50 a month left over after bills and expenses are paid)
  • Your car isn't worth more than £1,000
  • Your other assets combined are not valued at more than £1,000
  • The £90 fee is paid
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