Business Minister Ian Lucas has announced that the Government plans to make more people eligible to apply for Debt Relief Orders (DROs) providing extra support for those in financial difficulty.

The proposed changes to DROs would mean that those with very small pension pots would be able to apply for the Orders - which are a new, lower cost option for people to avoid bankruptcy.

Ian Lucas said:

“Debt Relief Orders help people who would otherwise be trapped in poverty to get back on their feet. Following representations from independent money advisers, I’m proposing a common sense change to ensure that vulnerable people with a very small pension pot are treated fairly. The Government will consult on this change shortly.”

Currently those consumers with a pension worth more than £300 are not eligible to propose a DRO.

The DRO is a form of insolvency for people that have a certain amount of debt, little disposable income and few assets.

The DRO will help to place the least complicated debt discharge cases on a fast-track through the court system with no personal appearance at court required.

DROs became available on the 6th April 2009.

Debtwizard guide to Debt Relief Orders (DROs)