In 2021, big changes were made to the criteria that determines who can apply for a DRO.
The Debt Relief Order (DRO) was created in 2009 to provide an affordable and proportionate debt relief for people on low incomes. The DRO is a really important solution for CAP clients, costing just £90 compared to £680 for bankruptcy, and more than 74% of our clients become debt free through one.
The Insolvency Service have proposed some changes to the monetary eligibility criteria in England and Wales so that more people are able to access a DRO. This includes raising the debt limit to £30,000 (from £20,000), the surplus income threshold to £75 per month (from £50 per month) and the asset limit to £2,000 (from £1,000).
We have responded to the consultation to welcome these overdue changes to the eligibility criteria, but urge them to go further to make sure those currently without an affordable, accessible and effective route out of debt have one.
