Recent changes to Debt Relief Orders (DROs) have successfully enabled more people in financial difficulty to access debt relief, according to an Insolvency Service review.
The review assessed the impact of the 2021 and 2024 reforms, which raised the maximum debt level, increased the asset allowances, and widened access for people with low incomes and low assets.
The review also considered the effect of the removal of the £90 administration fee, which was found to have a significant influence on DRO take-up, highlighting the important impact that such ‘barriers to entry’ can have on people accessing help.
Overall, the review concluded that the reforms have helped more people in financial distress access a suitable…