Debt Relief Orders Changes To Be Implemented In Northern Ireland

DROs are a formal insolvency procedure to help individuals deal with debts they can’t afford to repay. The long-awaited update will provide crucial support to individuals burdened by debt, offering them a valuable lifeline.

The removal of the £90 administration fee for a Debt Relief Order came into effect on the 17th of June 2024 and new legislation will see transformative adjustments to the DRO eligibility including the maximum debt threshold for DRO eligibility rise from £20,000 to £50,000 and an increase in monthly surplus income threshold from £50 to £75. It will also see the property value limit increase from £1,000 to £2,000. If approved, the changes will come into effect on the 8th July 2024.

A separate piece of legislation by the Department of Justice will increase the vehicle exemption limit from £2,000 to £4,000 and it is hoped that these changes will apply from Autumn 2024.

Sinead Campbell, Head of Money, Debt, and Quality at Advice NI expressed her support for the changes. Sinead said, “These legislative amendments are a significant step forward for debt relief in Northern Ireland. Advice NI has long advocated for changes that would provide fairer and more effective support to those struggling with debt. With these new measures, individuals will have greater access to relief, reducing the immense stress and hardship caused by overwhelming debt.

"The removal of the £90 application fee is particularly noteworthy. For many, this fee has been a substantial barrier to seeking help. Its elimination ensures that the DRO process is more accessible to those who need it most. By aligning our debt relief measures with those in England and Wales, Northern Ireland is taking a crucial step towards economic fairness and support for our most vulnerable citizens."

The changes follow the restoration of the Assembly earlier this year and are part of ongoing efforts to update Northern Ireland's financial support systems.

Advice NI is urging households and businesses facing financial difficulties to proactively seek support and get in touch with its free, impartial, and confidential Debt & Money Service.

Since 2019 Advice NI and its members have helped over 19,000 clients deal with £205.6m of debt, signalling the need for an affordable debt remedy and solution for those struggling. Get in touch by calling the freephone helpline on 0800 915 4604 to speak directly to an adviser between 9:00am and 5:00pm Monday to Friday or visit adviceni.net.

 

ENDS