Published: 08/07/2024 By Andrew Bailey
When most people talk about facing financial difficulties and insolvency they will talk about bankruptcy, debt management plans or Individual Voluntary Arrangements (“ IVAs”). Most people have seen the adverts about how you can legally write off personal debt by entering into an IVA, but over recent years there has been a lot of scrutiny over the appropriateness of these IVAs being presented to individuals as the right solution for their circumstances.Enter Debt Relief Orders (“DROs”). This article will not go into all the details about eligibility, but the important changes are that DROs are now available for those that owe up to £50,000 and there is no fee for applying for the DRO which was previously £90.
This threshold and eligibility has increased significantly from when they were initially launched.
The importance here is that I expect that many people who are facing bankruptcy or who were considering IVAs can now choose to enter into DROs which may now be a more suitable option.
When you also consider the “Breathing Space (Debt Respite Scheme)” option too there is a lot of support out there for individuals facing financial difficulties not just IVA's or bankruptcy.