Debt relief order

plonker

I have seen this mentioned in another post but was hoping someone could give me some more info and if you know when it comes into force

Not possible for OH as his debts are more that 15k, but might be a better option for mine

Thanks

scaredwitless32

Just found this on the Insolvency site here: http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/intermediariesworkingroup/debtrelief.htm if that will help , not read it yet so I dont know what its about. Never heard of this before

im1dful

DROs are planned to come into force on 6 April 2009.

The primary legislation is in place (came into force a month or so ago), however secondary legislation now needs to put in place to say how it actually works.

fermi

im1dful wrote: »

DROs are planned to come into force on 6 April 2009.

The primary legislation is in place (came into force a month or so ago), however secondary legislation now needs to put in place to say how it actually works.

Yep. Meant to post the info below earlier today.

From: http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/dearip/dearipmill/chapter17.htm#47 Dated March 07.

47. The Tribunals Court & Enforcement Bill: Debt Relief Orders

Debt Relief Orders (DROs) are a new form of non-court based debt relief aimed at debtors who owe relatively little, have nothing with which to repay their debts and cannot access any of the currently available debt resolution procedures either because they are ineligible as they cannot make repayments, or because they are unable to finance the relevant fees. It is proposed that debtors who meet the relevant criteria will be able to apply for a “debt relief order”, which will be made administratively by the official receiver. The effect of the order will be to provide a stay of enforcement proceedings against the debtor, the debts being discharged after 12 months. As with bankruptcy, there will be penalties for misconduct by the debtor.

The Tribunals Courts and Enforcement Bill inserts provisions into the Insolvency Act 1986 relating to the operation of DROs. Schedule 17 of the Bill provides for the insertion of a new Part 7A into the Insolvency Act 1986 which sets out the main legislative framework for the process. Schedules 18 and 19 insert two new schedules into the Insolvency Act 1986, which provide more detail about the conditions to be met for a DRO and also more details about debt relief restrictions orders. Schedule 20 sets out the consequential amendments to the Insolvency Act 1986 and other legislation.

The Bill was introduced into the House of Lords in November 2006, and, aside from one small technical amendment, completed its passage through that chamber without any changes to the debt relief provisions. The Bill is now before the Commons. Second reading was 5 March, and it is expected go to Committee later this month.

Once the primary legislation is in place there will be a considerable amount of work to do in relation to the secondary legislation and DROs are not expected to be operational before April 2009.