Wednesday 24th of March 2010
People who are struggling with debt but are finding it difficult to get help because they have small pensions could benefit from a new government consultation on Debt Relief Orders (DROs).
DROs are more affordable alternatives to bankruptcy and aimed at those who have unsecured debts of up to £15,000, a small amount of disposable income and few assets.
However, according to the Insolvency Service, some Brits who have money problems are unable at present to get a DRO, due to the asset value of their future pension.
The organisation states the plans to open up DROs to these people were launched by business minister Ian Lucas yesterday (March 23rd) at Hackney’s Citizens Advice Bureau.
Commenting on the announcement, Mr Lucas says: "We are consulting on a common-sense change to make these orders more accessible to the people they were designed to help."
Sue Edwards, head of consumer policy at Citizens Advice, explains that she welcomes the news as "vulnerable" debt clients may now benefit "from the fresh start a DRO could offer".
Written by Hayley Jones
