Debt Relief Orders
The Insolvency Service has announced that £2.3bn of debt relief has been granted since April 2009 when the first Debt Relief Order (“DRO”) was approved. DROs were introduced to assist people with low levels of assets and little surplus income to deal with their debts. DROs are a type of insolvency procedure that is available exclusively to people who:
- do not own their own home;
- have less than £20,000 worth of debt; and
- have minimal disposable income each month.
In appropriate circumstances, DROs have proved to be simpler and cheaper than either individual voluntary arrangements (IVAs) or bankruptcy. Between 2009 and 2017, more than 254,000 DROs were approved by the Insolvency Service for individuals with average debts of circa £9,400.
Whilst those eligible can benefit from the relative speed and low set-up costs of a DRO (applications are submitted online to the Official Receiver through an authorised debt adviser), it is crucial that those in financial difficulties seek professional advice at an early stage as different circumstances benefit from tailored debt solutions.
If you require further information about personal debt solutions and potential insolvency options, please contact our insolvency specialists, Sarah Mower or John Bradshaw of our Business Services team.
Sarah Mower specialises in business insolvency and restructuring within the Business Services department at Barker Gotelee Solicitors in Suffolk.
Ipswich Insolvency Solicitors – for more information on our range of legal services, please call the team on 01473 611211 or email [email protected]
