Let’s create better Debt Relief Orders

Following a meeting attended by over 140 front-line debt advisers at the beginning of the month, we have now pulled together our response to the Government’s consultation concerning the eligibility criteria for Debt Relief Orders. The full response can be downloaded here.

In line with the consensus of the meeting, we are calling for:

• The abolition of the total debt limit

• For all liabilities to be included, even when they are not originally listed (as in bankruptcy)

• A reset for the maximum vehicle value to £3,000 (as it currently is in Scotland)

• Abolition of the £90 fee, and

• For an increase the monthly disposable income limit to £100 per month, but for a further review of, and increase to the spending guidelines on the Standard Financial Statement.

However, our response raises further concerns about the operation of the Debt Relief Order scheme, including in relation to the workload pressure that the application process creates for debt advisers. We also make the point that the insolvency ‘system’ as it currently exists needs further reform.

We need you to support our response

For the response to achieve the greatest impact, we need your signature in support. We only have a week to obtain as many signatures as possible, so please add your name to the list here.

Finally, a huge thanks to all those who attended the meeting on 1st February. We hope that the document we have produced fairly reflected the mood of the meeting, and has captured the key points to pass onto Government.