Published: 10/04/2024 By Hannah Duncan
Great news for individuals struggling with debt. As of June 28, 2024, the maximum limit for debt relief orders (DROs) is being raised from £30,000 to £50,000 for non-homeowners. Not only that, but application fees have also been scrapped, making it even easier for those in financial distress to seek relief. The £90 charge was removed on 6th April making a DRO now free to apply for.
Listen to the blog instead For those unfamiliar, a debt relief order (DRO) provides a vital lifeline for individuals drowning in debt. It allows them to halt payments towards their debts, including interest, for a period of 12 months. During this time, they're exempt from paying most debts, with the exception of essential expenses like rent and bills.
However, there are certain restrictions to abide by. These include refraining from borrowing more than £500 without informing the lender about the DRO and avoiding taking on roles as company directors.
This significant increase in the debt relief order limit is a beacon of hope for many individuals who have found themselves overwhelmed by financial obligations. By expanding the threshold to £50,000, more people will now have access to the relief they may need.
Moreover, the removal of application fees further eases the burden on those seeking assistance. It ensures that financial hardship doesn't become a barrier to accessing the support and relief provided by debt relief orders.
If you or someone you know is struggling with debt, now could be the time to explore the options available. With these recent changes to debt relief orders, we always strongly suggest seeking professional advice from a regulated debt advisor to ensure you take the most suitable route for your personal circumstances.