Debt Relief Orders consultation

Other articles (Insolvency Practitioner, February 2021):

• Michelle Thorp, CEO
• Kevin Hellard, President
• Important reminder: Extraordinary General Meeting
• IPA Annual Conference
• New Joint Insolvency Committee role for the IPA 
• Renewals
• ICO Data Sharing Code
• A reminder for members who deal with IVAs
• Changes to IPA membership criteria
• Business continuity and support
• Proposed FCA guidance for Insolvency Practitioners: How to approach FCA-regulated firms
• Insolvency Service guidance on monitoring Insolvency Practitioners: advertisements, marketing and debt advice  
• Vacancy for a Disciplinary Chair of the Disciplinary and Appeals Committee
• Vacancy for a Head of External Affairs and Business Development
• Update: HMRC Enforcement and Insolvency Services phone lines
• IPA rules review

As you may be aware, the Government issued a consultation on 12 January 2021 to seek views on increasing the current monetary eligibility limits of Debt Relief Orders (DROs).

The thinking behind this proposal is that it would give more people who are in problem debt, with low levels of assets and low income, access to a suitable and proportionate option for managing their debts – keeping in mind that an equal balance between the interests of creditors and those in debt needs to be achieved. While it is expected that the Government is seeking to ensure that insolvency solutions are fair, we recognise that the changes proposed could have a significant impact on some Insolvency Practitioners’ business models and would like to understand your perspective.

The consultation closes on 26 February 2021, and we encourage all members to respond. Read more here.