DRO - Budget changes

maxmycardagain

DRO's soon to be free (no fees), upto £50,000 total debt and a car ignore value of £4000

Welcome news to many i suspect

"In this week’s Spring Budget, it was announced that the government is removing the £90 administration fee for Debt Relief Orders (DROs) from 6 April 2024, and raising the maximum debt value threshold from £30,000 to £50,000 and increasing the maximum value of motor vehicle that an individual can retain from £2,000 to £4,000 from 28 June 2024."

Brie

Yes good news to a lot of people except perhaps the ones that actually process the DROs!

No one is likely to submit a DRO between now and the 6th April and then there will be an avalanche.  And between April and June everyone dealing with debt clients who have been on token payments for years but have debts of under £50k will be looking to see if the clients want to move to DROs instead.  So another avalanche at the beginning of July.  

maxmycardagain

with a £50,000 maximum figure from what was - not long ago - £19,000 i reckon pukka bankruptcies (with the £700 fees) will see some downturn too