Widespread welcome for reforms to Debt Relief Orders

Charities and the insolvency industry have welcomed proposals to reform Debt Relief Orders (DRO).

Many people struggling with small debts have been unable to take advantage of the DRO scheme because they had pension arrangements, even though those pensions may have been of little value and not available for several years to come.

The Government is now making DROs available to debtors with an approved pension, to provide them with as much support as possible.

Steven Law, president of the insolvency trade body R3, said the move was “good common sense”.

Sue Edwards, head of consumer policy at Citizens Advice, said: “”We warmly welcome this announcement which will benefit those who fulfil most of the criteria for a DRO yet were having applications rejected because of very small pension funds, something that has been of great concern to us.””

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