Limits increased; Bankruptcy and Debt Relief Order

In October 2015, the government is increasing Bankruptcy and Debt Relief Order (DRO) limits.

Bankruptcy minimum limits are being increased from £750 to £5,000 before someone owed money can force a person into bankruptcy, which should see enforcement of Writ on Control increase as an alternative enforcement method.

Debt Relief Orders are having the maximum amount of debt they can recover increased from £15,000 to £20,000. Debt Relief Orders are used on those with very few assets and low income but with debt, which they are unable to pay. DRO’s are low cost alternative to bankruptcy. The change will also see asset limit for DRO’s increase, to £1,000 plus a vehicle (worth no more than £1,000).