A landmark change to insolvency legislation will expand access to the Debt Relief Order regime to those with an approved pension, the government has announced.

From 6 April legislation will be altered to bring the arrangements for accessing Debt Relief Orders (DRO’s) in line with the arrangements for entering bankruptcy, which will increase the number of people eligible to apply for a DRO.

Under current legislation individuals with a pension worth over £300 are not eligible for a DRO, even if the pension is small and not receivable for many years.

However the government has agreed to amend this loophole after completing a consultation prompted by debt advice agencies following a large number of cases where DRO applicants met the stringent eligibility criteria, but were denied access because of small......Read more Here