Changes to Debt Relief Orders ‘will make them more accessible’

New changes will make Debt Relief Orders (DROs) available to a wider range of people, an expert has said.

The Department for Business, Innovation and Skills has announced that the alterations will take effect from April 6th.

Tom Howard, a spokesperson for the Consumer Credit Counselling Service, explained: “For some, insolvency is the best option and DROs, where appropriate, are a useful tool in helping people confront and resolve debt problems.”

Currently, people with a pension that is over £300 are eligible to apply for a DRO, but the changes will allow people on a lesser income to claim.

However, Mr Howard also suggested the government needs to be alert to face any potential teething problems the scheme may bring and will have to constantly review the orders.

The Office for National Statistics recently released figures showing that over 35,000 individual cases of insolvency were recorded in England and Wales in the fourth quarter of 2009.

By Joe Shervin