Eligibility
♦ You are generally eligible if you meet all of these criteria (based on May 2021)
♦ You owe less than £20,000 in unsecured debt
♦ You have less than £50 a month available income after normal household expenses
♦ You have less than £1,000 worth of asset
♦ You do not own a car or motorbike worth £1,000 or more
♦ You have lived or worked in England and Wales within the last 3 years and have not applied for a DRO within the last 6 years
♦ You are not currently involved in a bankruptcy situation
However, these figures are planned to change in June 2021, whether the change occurs post-Covid is currently unknown. The planned changes are planning to raise the limits – see below
♦ Increasing the total debt you can have to £30,000.
♦ Changing the value of assets you can have to £2,000.
♦ Increasing the maximum allowed value of a car to under £2,000.
♦ Allowing you to have up to £75 a month spare income
DROs are based on the individual, as such, you cannot seek a joint DRO with another person.
How we can help
Leston’s can provide generic guidance on debt matters, for individual guidance however we would refer you to an approved independent financial advisor who would take the lead in guiding you through the various options. For assistance simply click on the “Create a case” link at the top of this page to initiate a case.
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