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Changes to Debt Relief Orders and Bankruptcy
Posted by Ian, CCAB.
Updated 1280 days ago in: Information Sharing
Currently, a person only needs to owe £750 or more for a creditor to be in a position to issue bankruptcy proceedings against them (a creditors petition). This limit will rise to £5000. The £750 limit has been in place since 1986. This is a positive move, as it prevents creditors form making debtors bankrupt for relatively small debts.
The debt limit for a DRO will rise from £15,000 to £20,000, making more people eligible for this remedy. The asset limit will also rise to £1,000 (previously £300) but the maximum vehicle value remains at £1,000, as does the disposable income limit of £50 per month.