More help for people with personal problem debt
To enable more vulnerable people to access cheap debt relief, thresholds are being raised for Debt Relief Orders. The negative threat of being forced into bankruptcy is also being removed for those holding low level debts.
More people able to access debt relief orders (DRO)
From 1 October 2015 the maximum debt you can owe to apply to have it covered by a DRO is increasing from £15,000 to £20,000. You will now be able to have £1,000 in assets (increasing from £300).
There is more information about getting a debt relief order.
Minimum debt for bankruptcy rises
From 1 October 2015, the minimum debt someone who you owe money to (your ‘creditors’) can ask the court to declare you bankrupt for will rise to £5,000 from £750. Bankruptcy has serious impacts, and this change ensures that people with low level debts are taken out of it.
Last updated 18 September 2015 + show all updates
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Text revised for clarity.
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First published.