StepChange and the Money Advice Trust have welcomed confirmation by the Insolvency Service of changes to the asset limits for eligibility for Debt Relief Orders (DRO).
At the same time, the charity said that the long-awaited outcome of the review of the consultation on the regulation of insolvency practitioners is also important, as is today’s confirmation of the government’s forthcoming call for evidence on insolvency debt solutions more widely.
Peter Tutton, StepChange head of policy, research and public affairs, said: “We are pleased to see the Insolvency Service confirmation of increases to the asset limits that will enable more people to access Debt Relief Orders. DROs can act as a valuable form of “reset” from debt for some people, and are likely to be particularly useful in the wake of pandemic debt.
“However, we very much agree that the changes need to form part of a wider review of the insolvency landscape, and we look forward to contributing to the Government’s forthcoming call for evidence on this."
The Money Advice Trust has also welcomed the confirmation. Joanna Elson CBE, chief executive of the Money Advice Trust, said: "These welcome changes will significantly improve access to DROs for people in financial difficulty. Along with the launch of Breathing Space and the forthcoming introduction of Statutory Debt Repayment Plans, we are making real progress towards the ultimate goal of ensuring that everyone has access to a safe route out of debt.
"In the wake of Covid-19, it’s more important than ever that the government takes a wider look at the existing debt options landscape to ensure no one is allowed to fall through the cracks in a framework that has evolved in a piecemeal fashion over several decades."