A Debt Relief Order is only applicable for those debtors who have debts of less than £15,000, assets of no more than £300 and disposable income of no more than £50 per month. They are, in essence, a simplified, more cost effective formal insolvency procedure to deal with low levels of debt which is owed by the very poorest of people.
Discussions are now being held as to whether people with pension provisions in place are eligible for a Debt Relief Order.
We are aware that some creditors are now expressing concern about DRO’s, although they did not respond to the consultation process before the DRO was launched in April this year. A senior member of the Insolvency Service staff commented that maybe they should consider that the Insolvency Service did not create the debt but were merely dealing with the outcome of lax lending criteria. So say all of us….