Law Society guidance on DROs
A recent blog entry on DROs highlighted some qualities of the new procedure, due to come into force on the 6th April 2008. The Law Society has now also issued guidance for solicitors on the new procedure. They DRO is summarised as:
"Debt Relief Orders are an alternative to bankruptcy for clients who have:
- less than £15,000 in unsecured debt
- less than £300 in assets and
- less than £50 per month disposable income after they have met all their essential expenditure.
Creditors who are included in the DRO will be prevented from taking any action to recover their debts from the client. Generally the debts of the client will be discharged at the end of one year."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...