Changes to Debt Relief Order criteria come into effect

Today sees the introduction of new Debt Relief Order (DRO) criteria in England and Wales.

The changes include the maximum qualifying debt level increasing from £15,000 to £20,000 and the non-vehicle asset limit rising from £300 to £1,000.

Commenting on the changes, David Rodger, Chief Executive of Debt Advice Foundation, said "The charity welcomes the changes to Debt Relief Order eligibility, which hopefully should enable many more people to access this important form of financial remedy in the future."

"It is often the case, particularly where Debt Relief Orders are concerned, that people find they are unable to access a perfectly suitable form for redress simply because they’re a few pounds over the qualifying criteria."

"We hope that in the future, the Government will go one step further and raise the surplus income limit of Debt Relief Orders as well, which will help even more people."