New Help for Low Income Groups in Debt

bdavis7 · 17 February 2009 at 3:04PM

The government is about to unveil a new package called a Debt Relief Order to help the small, but not insignificant group of people who cannot receive mainstream debt help.

The debt relief order will help people who have debt but do not own their property, have little or no assets and have a small income. Such people often get stuck with debts and cannot take advantage of bankruptcy or IVA.

A DBO is the government's response to concern expressed by mental health groups who are concerned about the poor with debt in Britain.

Livto_2 · 17 February 2009 at 3:06PM

We all know this govt is good with the ideas but useless when it comes to putting them into reality :rolleyes:

bdavis7 · 17 February 2009 at 3:09PM

True, but hopefully this time they will really help the most needy. Afterall, everyone else is getting help with debt, why not the poorest. But yeah, time will tell

beanielou · 17 February 2009 at 7:20PM

Take it this is to be similar to the low income low assets route to bankrupcy in Scotland.

Chris1001 · 18 February 2009 at 1:15PM

They'll be coming in in April this year. They are aimed at people with debts below £15,000 - and those with little or no assets and with less than £50 per month surplus income. If you think you might qualify, then discuss with your local Citizens Advice Bureau or with one of the free debt advice agencies. It will cost you £90 (which can be paid in installments) which is a lot cheaper than bankruptcy but the rules at the moment seem more stringent. However, as someone who works at a CAB and sees lots of people with this level of debt, they look like a good thing.