Any update of the DRO and possible pension pit increases?

newdawn_2

Any update of the DRO and possible pension pit increases?

Keep looking at the insolvency website but nothing yet. Just looked through that huge legal doc and cant see anything about pensions...grrrr.

If the changes dont happen soon its BR for my BF.

blind-as-a-bat_2

Sorry, no, not that i can find, sort of in the same boat re my OH, thanks to the increase, BR wont be an option now till the end of the year, and even i dont think i can stop court action before then, after 26 months of not paying anyone, im running out of ideas, let alone luck. _pale_

debtinfo

Last i heard it was just an idea that they want to do rather than a firm commitment so could be months if ever

immoral_angeluk

They're currently reviewing it with a view to allow a small pension pot, but as of yet there's nothing concrete nor any idea of timescale for it.

newdawn_2

Thanks guys - kinda of thought that. Just dont know if BF can delay for 6mths while we sort out fees etc....

newdawn_2

LOL....Just realised I typed pension pit not Pot!

newdawn_2

Thanks to Pugsley29 on the DRO thread who found this

WRITTEN MINISTERIAL STATEMENT
IAN LUCAS, MINISTER FOR BUSINESS AND REGULATORY REFORM, DEPARTMENT FOR BUSINESS, INNOVATION AND SKILLS
23 MARCH 2010
DEBT RELIEF ORDERS AND PENSIONS
We are today launching a consultation about personal insolvency. Specifically, we are asking whether we should amend the eligibility criteria relating to Debt Relief Orders (DROs) in order to allow access to those people who are currently excluded because they have pension rights based on a small current pension valuation that they cannot draw down for some years.

DROs were introduced in April 2009 following research that identified that there were people in long term debt difficulties who had nothing to offer their creditors and who could not afford to make themselves bankrupt. Delivered in partnership with the professional debt advice sector, DROs provide low cost easy access to debt relief for those overwhelmed by relatively low levels of unmanageable debt. They are designed to provide a fresh start for the most vulnerable people trapped in debt.

There are strict eligibility criteria of assets less than £300, debts no more than £15,000 and surplus income of less than £50 per month. But because a pension is treated as an asset, some people who would otherwise qualify find themselves unable to apply for a DRO because they have pension rights based on a pension that has a low current valuation. This consultation examines a number of options designed to make the system fairer for these people. In particular, we propose asking whether a pension should not count towards the value of assets provided that the current valuation is no more than either £1,000 or £5,000 or £10,000; and/or where the individual cannot draw down the pension for at least 5 years or 10 years. We also intend to ask whether there should be an additional requirement that the pension scheme must be one that is approved by HMRC.

I am placing copies of the consultation paper in the Libraries of the House.

We intend to actively engage with stakeholders throughout the consultation and welcome views on whether the proposals will deliver a workable solution that provides greater access to vulnerable debtors. The consultation will close on 23 June 2010.

blind-as-a-bat_2

Already knew most of that, but the closeing date was not on the copy i got;)

So at least that rules it out before april this year at least, and most likely it wont be sorted until april next year:(

newdawn_2

Yep...its made the BR decision for my BF. Too long for a possibability that may never come.