Debt Relief Orders
In April 2009, Debt Relief Orders were introduced and were designed to help those in financial difficulties with less than £15,000 of debt and less than £300 in assets.
The problem with these D.R.O's is they include all assets….even a pension which you may not be entitled to for many years. In doing so, it automatically eliminates people from being able to apply for a D.R.O and leaves them with no alternative except to go for bankruptcy or wait for the bailiffs to eventually turn up.
This idea which was designed to help people in real financial hardship with spiralling debts is actually no good should you have been made redundant and are not able to receive your pension for another 30 years!
The issues regarding removing pensions from the application for a D.R.O should be addressed immediately and help ease personal financial debts which are fast becoming out of control.
Why does this idea matter?
By relieving personal debts, you relieve the burdens on hard up families struggling to survive. There are implications behind D.R.O's, so it is not just a clean let off regarding the debts owed, but even so, it is an option which will help out a lot of struggling families and individuals.
For those with mortgages, it may help to bring them back on track. Those with rent to pay may be able to actually pay it on time and those with unauthorised overdrafts on their bank accounts will be in a position to bring their accounts back under control, avoiding bank charges!
Their are many social benefits to relieving financial burdens, such as keeping families together and creating the feeling that the person with the debt has a chance to improve their lot in life. Depression, stress and many of the other factors which effect people in debt has knock on effects and not always positive. Families fight, they live in fear of debt collectors turning up at the door or opening their mail finding another threatening letter. Too scared to even answer the phone unless they are absolutely sure who is on the other end! Violence can often be attributed to stress and depression as well as anti social behaviour.
Eliminate the stress of debt and you may start to eliminate some of the social issues which effect many communities!