New Legislation On Debt Relief Orders

There has been new legislation introduced to the Debt Relief Order (DRO) scheme in Northern Ireland which it is hoped will provide more valuable support to individuals who are struggling with debt. These new measures have brought Northern Ireland more into line with how the system operates in England and Wales.

A DRO is basically an insolvency procedure that is there to help people deal with debts that they can’t afford to pay. The changes to the scheme have been welcomed by Advice NI among others.

Transformative Adjustments To The DRO Scheme

Here are some details on the changes to the DRO scheme, as mapped out by an article on the Business Eye website. It says that:

‘New legislation will see transformative adjustments to the DRO eligibility including, the maximum debt threshold for DRO eligibility rise from £20,000 to £50,000, an increase in monthly surplus income threshold from £50 to £75 and the savings or asset value limit increase from £1,000 to £2,000. The changes come into effect on July 8 and follow the removal of the £90 administration fee introduced last month.’

A Significant Step Forward For Debt Relief In NI

In the same article, Sinead Campbell, Head of Money, Debt, and Quality at Advice NI, is quoted as saying about these changes:

“These legislative amendments are a significant step forward for debt relief in Northern Ireland. Advice NI has long advocated for changes that would provide fairer and more effective support to those struggling with debt. With these new measures, individuals will have greater access to relief, reducing the immense stress and hardship caused by overwhelming debt.

“The removal of the £90 application fee and the increase in the amount of debt is particularly important. For many, the fee has been a substantial barrier to seeking help. Its elimination ensures that the DRO process is more accessible to those who need it most. By aligning our debt relief measures with those in England and Wales, Northern Ireland is taking a crucial step towards economic fairness and support for our most vulnerable citizens.”

It is good to see that new legislation is finally being pushed through now that the Stormont executive is sitting and properly functioning once more. The stalemate was doing the country a great deal of harm but hopefully we can see real progress now the government is fully restored. They have a lot of lost time to make up that’s for sure.