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StepChange welcomes DRO changes but emphasises importance of further change

10 May, 2021

StepChange Debt Charity welcomes today’s confirmation by the Insolvency Service of changes to the asset limits for eligibility for Debt Relief Orders. At the same time, the charity says 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.”

Notes to editors

  1. StepChange Debt Charity is a competent authority for Debt Relief Orders, a form of insolvency in England and Wales for people with low assets and debts.
  2. The debt advice process considers an individual’s situation to assess what forms of debt solution would be suitable. Since 4 May, accessing debt advice has also opened up the potential for an individual seeking help with their debts to apply for breathing space, providing a temporary 60-day respite from most collections activity while people embark on establishing a sustainable, long term plan to address their debt.

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