Bankruptcy rules set to change - good news for those in debt
There is some goods news for those struggling with debt as the the minimum amount to be forced into bankruptcy is set to rise. The current level of £750, set back in 1986, is set to rise to £5,000 from October 2015.
At the same time the maximum amount of debt that can be covered by a Debt Relief Order will increase from £15,000 to £20,000. Debt Relief Orders are designed as an alternative to bankruptcy for those with lower levels of debt and the proposed changes will allow more debtors access to this option.
Debt charities and insolvency firms have been campaigning for these changes as many debtors are unable to afford the fees involved in bankruptcy and owe too much to use a Debt Relief Order. This problem leaves many people stuck trying to handle their debts without any chance of drawing a line under them and moving on.
- Bankruptcy explained - the what, why & how ,
- Debt Relief Orders explained - an alternative to bankruptcy
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