Difference DRO and bankruptcy

fatbelly

harryharry305 said:

fatbelly said:

If you were in Scotland there are some changes going through.

However, the two jurisdictions (England&Wales being the other) rarely take any notice of what the other is doing.

What are expected next changes for England and how soon?

surely everyone can see the explosions of bankruptcy cases coming from businesses and personal insolvencies 

There are no meaningful changes anywhere near being implemented. Just lobby groups at the moment

harryharry305

fatbelly said:

harryharry305 said:

fatbelly said:

If you were in Scotland there are some changes going through.

However, the two jurisdictions (England&Wales being the other) rarely take any notice of what the other is doing.

What are expected next changes for England and how soon?

surely everyone can see the explosions of bankruptcy cases coming from businesses and personal insolvencies 

There are no meaningful changes anywhere near being implemented. Just lobby groups at the moment

Fat belly do you think there are an avalanche of insolvency cases coming soon?

if so do you think there will be many significant changes to deal with so many?

Flyright

There won't be any changes to the way that cases are dealt with as the Official Receiver has the same duty to investigate regardless of case numbers.

fatbelly

harryharry305 said:

Fat belly do you think there are an avalanche of insolvency cases coming soon?

if so do you think there will be many significant changes to deal with so many?

My gut feeling is that there will be a small increase in personal insolvencies and a large one in business insolvency, and no significant changes in England and Wales for the next 12 months.

It's anyone's guess though.

DaveandMayu

fatbelly said:

harryharry305 said:

Fat belly do you think there are an avalanche of insolvency cases coming soon?

if so do you think there will be many significant changes to deal with so many?

My gut feeling is that there will be a small increase in personal insolvencies and a large one in business insolvency, and no significant changes in England and Wales for the next 12 months.

It's anyone's guess though.

Do you include the millions in rent areas in your gut feeling?

sourcrates

DaveandMayu said:

fatbelly said:

harryharry305 said:

Fat belly do you think there are an avalanche of insolvency cases coming soon?

if so do you think there will be many significant changes to deal with so many?

My gut feeling is that there will be a small increase in personal insolvencies and a large one in business insolvency, and no significant changes in England and Wales for the next 12 months.

It's anyone's guess though.

Do you include the millions in rent areas in your gut feeling?

Well, as fatbelly is a CAB rep, i would say his "gut feeling" may be based on his experiance, and what he see`s coming through the door everyday, the number of insolvencies does not usually equate to rapid change to the system, as he says, "It's anyone's guess though".

JonVarnas

My only real gripe with a DRO is the £50 a month excess income limit. They really need to take a look at raising it as you can't say that just because you've got an extra £11.50 a week coming in that you're suddenly in a good position to deal with debts of up to £20K - it could take decades to pay off.

fatbelly

The thing is, Jon, If they increase the maximum surplus income they might introduce a minimum debt level. As things stand if you have £40 surplus and £2400 debt you could use a DRO even though you could also do a 5-year dmp.

Now I know what you're saying. You could have £100 surplus and 20k debt, and be unable to do a DRO. But a 200 month dmp is unrealistic. As things stand the government would expect you to go for full bankruptcy.and possibly have a 3-year IPA.

There is a big gap between DRO and bankruptcy. There are a few things they could do to help. If I hear of anything in the pipeline I'll flag it up straight away here.

DaveandMayu

I would like to see it raised to £25k with a £100 surplus every month 

or there should be other avenues for the increased numbers of debts problems coming down the line.

Maybe even writing off rental debt altogether 
https://www.theguardian.com/society/2020/jun/05/eviction-ban-extended-in-uk-by-further-two-months

Amina Gichinga, of the London Renters Union, said: “Unless it takes action to cancel the debt that hundreds of thousands of renters are in because of the coronavirus pandemic, today’s announcement simply kicks the can down the road.

“We are still heading for a chaotic rent debt and eviction crisis this summer unless the government cancels rent debt and makes the eviction ban permanent.”

fatbelly

Changing the insolvency rules isn't going to have any effect on what the London Renters Union is complaining about.