On Monday 6th April, the Debt Relief Order came into effect. This will mean people on low incomes with limited debts who could not previously afford to go bankrupt will be able to write off their debts. Starting again after a period of 12 months.
A debt relief order is now available and Consumer Affairs Minister Gareth Thomas has welcomed the news.
He said: “We want anyone in difficulty to be able to access the help they need”.
“We know that many people are already struggling to stay on top of their bills and pay their debts. So we are taking action to ensure consumers are in control of their finances and are treated fairly.”
However this is not an easy option for people in debt. The insolvency will be a matter of public record and creditors will be able to apply to have the order revoked. But it will help those trapped in poverty.