Debt Relief Orders ? changes proposed

The government has announced that it is looking into altering Debt Relief Orders (DROs) so that they don’t discriminate against those with pensions who need help with finances.

At present, a person who wants to apply for a DRO needs to have assets of less than £300 and not be a homeowner.

However, any pension they own is likely to take them above that cap, meaning they would not be eligible.

Independent money advisors have welcomed the change, saying that it will enable more people to use a DRO as a viable debt solution.

However, DROs are only available for those with personal debts of under £15,000. People owing more than that figure might find that a Debt Management Plan (DMP),

Individual Voluntary Arrangement (IVA) or even bankruptcy is a better solution to personal debt for them.

Director of Atlantic Vance Parsons explains that "A Debt Relief Order was established in April 2009 to assist indebted consumers regain control of their finances. It costs £90 and will last for 12 months.

There are a number of qualifying criteria and you need to use a qualified ‘intermediary'.

Atlantic provide debt advice all on relevant debt solutions and will fully explain the benefits of each debt solution at the face-to-face meeting."

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