Debt Relief Order changes

David Holland, Chief Inspector | 8 March 2024

The IPA welcomes the Debt Relief Order (DRO) changes, which are likely to make DROs more accessible to a broader segment of the population.  

However, there are concerns about the potential imbalance created across UK debt solutions, especially considering that a DRO will now be free but the costs to declare bankruptcy in England and Wales remains high at £680, especially when compared to £150 in Scotland.

The increase in the car valuation will greatly assist individuals in choosing a DRO, but the general asset level has not been adjusted, possibly leaving certain individuals still struggling to qualify for DROs.

As regulators, we will monitor the impact of the DRO changes, particularly on individuals already enrolled in existing debt solutions. To assist in ensuring fairness and effectiveness across all debt relief mechanisms, it is important that regulators across all debt solutions are able to demonstrate the impact of the decisions by sharing data.