November 2018 saw the Insolvency Service grant its
250,000 Debt Relief Order, providing a low cost debt relief
solution to a quarter of a million people.
First introduced in 2009, Debt Relief Orders (DROs) assist people
who have small levels of assets and little surplus income deal
with debts under £20,000.
Costing £90, people apply for a DRO through an authorised debt
adviser, from organisations such as Citizen’s Advice and
Stepchange, who will submit an on-line application to the
Official Receiver on the applicant’s behalf.
The first DRO was issued on 8 April 2009 and in early November
2018 the Insolvency Service issued the 250,000 DRO.
A DRO normally runs for 12 months after which the debts are
written off and in 2017, the Insolvency Service processed 24,894
new DROs. Nearly two-thirds (65.4%) were granted for women in
that year and the age groups 25-34 and 45-54 made up just over
half (50.7%) of all applications.
The North East had the highest DRO rate in 2017 at 7.7 per 10,000
adults, followed by Yorkshire and Humber at 7.5 per 10,000
adults. The DRO rate was lowest in London and the South East.
Adjudicator and Head of Debt Relief Orders for the Insolvency
Service, Liz Thomas, said that 99% of DROs are approved within 48
hours of the application being received.
Liz Thomas said:
When first introduced, DROs significantly changed the debt
relief landscape and reaching the 250,000 mark is an important
milestone.
Next April will see us celebrate 10 years of processing DROs
and working with our colleagues in the debt advice sector, we
will continue to provide people with the opportunity to easily
and successfully deal with their debts.
In October 2015, the upper limit for qualifying debt was raised
from £15,000 to £20,000, and the asset limit was raised from £300
to £1,000.
Notes to editors
Statistics relating to number of DROs issued in 2017 in England
and Wales, including breakdown of age, gender and location were
sourced from GOV.UK
Information about how to apply for a DRO is available on GOV.UK,
including where to find a debt adviser.
The Insolvency Service administers the insolvency regime,
investigating all compulsory liquidations and individual
insolvencies (bankruptcies) through the Official Receiver to
establish why they became insolvent. It may also use powers under
the Companies Act 1985 to conduct confidential fact-finding
investigations into the activities of live limited companies in
the UK. In addition, the agency deals with disqualification of
directors in corporate failures, assesses and pays statutory
entitlement to redundancy payments when an employer cannot or
will not pay employees, provides banking and investment services
for bankruptcy and liquidation estate funds and advises ministers
and other government departments on insolvency law and practice.
