Record Number of People Take out Debt Relief Orders in April

The number of people taking out a debt relief order (DRO) reached a record high in England and Wales in April, according to new figures. Some 3,436 DROs were recorded by the Insolvency Service in April, marking a record high in the statistics going back to when DROs were introduced in 2009. The jump coincided with the removal of a £90 administration fee to obtain a DRO from April 6, 2024, the service said. Changes to DROs were announced in the 2024 spring Budget, with the fee having been seen as a barrier to some people dealing with their debts. Other changes to DROs, which will come into force in June, include raising the total amount of debt covered from £30,000 to £50,000 and increasing the value of the vehicle a person can own when they enter a DRO from £2,000 to £4,000....