The first Debt Relief Order (DRO) was approved 10 years ago in April 2009 with the aim of helping people with low assets and little excess income meet their debts *.
Since then, the Insolvency Service has approved over 254,000 DROs to people with debts averaging £ 9,400.
People apply for a DRO through a licensed debt counselor, organizations like Citizens Advice, StepChange, and PayPlan, who submit applications online to the Official Receiver on behalf of their client.
Around 99% of scrutineers are approved within 48 hours of receiving the application in the Plymouth team and 2018 saw the Insolvency Department grant around £ 312million in debt relief – the largest amount high for a single year.
A DRO normally lasts 12 months, after which debts are canceled and between 2009 and 2017 **, while 64% of DROs were granted to women, both sexes experienced similar average debt levels – £ 9,200 for women against £ 9,100 for men.
During the same period, 25% of DROs were granted to people aged 25 to 34. London has experienced the lowest rate of DRO each year since 2009 – 3 per 10,000 adults – compared to the North East and South West where the average rate of DRO per 10,000 adults was 7.8.
Liz Thomas, Debt Relief Orders Manager for the Insolvency Department, said:
Reaching the tenth anniversary of the approval of the first scrutineer is an important milestone and we are extremely proud of the role we have played in helping significant numbers of people get out of debt.
The tellers are a partnership with the debt counseling industry that we have worked closely with over the past decade to ensure that people have every chance to get out of financial hardship.
Paula Hogarth, DRO Service Debt Advice Center Manager for StepChange Debt Charity, noted:
Tellers are a good solution for people with few assets and low income who cannot afford to repay their debts.
While it is important that people receive proper debt advice as different circumstances lend themselves to different debt solutions, those eligible for scrutineers certainly benefit from the relative speed, simplicity, and low cost. the implementation of the solution, as well as the debt. -free one year later.
Diane Watson, Debt Relief Orders (DRO) Liaison Officer at Payment plan, noted:
We have hosted DROs for a significant number of clients since their introduction a decade ago and still fully assess clients before recommending debt solutions. So if a DRO is not the right fit, we’ll work with them to help them regain control of their finances in a plan that best suits their personal circumstances.
Notes to Editors
* In October 2015, the upper limit of qualifying debt was raised from £ 15,000 to £ 20,000, and the asset limit was raised from £ 300 to £ 1,000.
** Figures for age, location and sex are based on figures produced annually with the latest series published in July 2018. The next set of figures is expected to be released in July 2019.
Information on how to request a DRO is available on GOV.UKincluding where find a debt counselor. There are 12 competent authorities: Angel Advance, Advice UK, Christian Against Poverty, Citizens Advice, CMAS, Debt Advisory Center, Insolvency Practitioners Association, Institute of Money Advisors, Money Advice Trust, PayPlan, Shelter and Step Change
More information about the work of the insolvency service and how to complain about financial misconduct is available. available.
You can also follow the Insolvency Department on: