Proposals have been outlined by the U.K. government to increase the financial eligibility criteria for debt relief orders (DROs), helping more people deal with financial difficulties to get a fresh start, according to a press release. Research shows that the demand for debt advice could increase by up to 60% by the end of 2021 and around 3 million more people than before the pandemic will need support with problem debt by the end of 2021. The government is publicly consulting on changing the eligibility criteria to enter a DRO to:
- increase the total amount of debt allowable to £30,000 (from £20,000)
- increase the value of assets owned by the individual to £2,000 (from £1,000)
- increase the level of surplus income to £100 (from £50) per month.