Yesterday, we celebrated a very special debt free case, which marks the beginning of thousands more people being able to access a route out of debt that was previously restricted.
On 1 October, CAP submitted the first Debt Relief Order (DRO) for a client who was previously ineligible for this insolvency option due to having just over £18,000 worth of qualifying debt, which built up when her relationship broke down and she lost her job while pregnant. If she had been unable to access a DRO it would have taken her nine and a half years on a severely restricted budget to pay back her debt, or three years to save for the bankruptcy fee.
These changes follow on from CAP’s involvement in the campaign to raise the maximum debt limit for a DRO amongst other proposals, as more than a third of our clients, many of whom are vulnerable, were too poor to go bankrupt. The Insolvency Service predict that these changes will enable 3,600 more people to use DROs instead of more expensive insolvency options.
You can read about this campaign 'Too Poor To Go Bankrupt', and others, on the Policy and Government section of our website.