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10/11/2010

R3 responds to amendment of eligibility criteria of debt relief orders (DROs)

to allow those with HMRC-approved pension schemes access

 “We welcome Ed Davey’s announcement yesterday of proposals to reform the Debt Relief Order (DRO) regime, allowing debtors with an approved pension access to the DRO procedure. When DROs were introduced in April 2009 we had concerns that debtors with any kind of pension pot were effectively barred from this form of debt relief.


“The announcement that those with an HMRC approved pension will not have that value set against the asset ceiling of £300 is good common sense. It seemed counter-intuitive to discourage even those with a very small pension pot which could be years away from being drawn down.


“We look forward to hearing more on the detail of these revised criteria but it should allow many more to take up this accessible and low-cost form of statutory debt relief.”


Steven Law, President of R3, insolvency trade body


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.