INSOLVENCY RULES have been amended to exclude pensions as an asset in personal insolvency cases, a move welcomed by business minister Edward Davey.
The rule changes are applicable to debt relief orders (DROs) which sees an individual’s liabilities reduced and paid back over a contracted period of time. The DRO user must owe less than £15,00, and have assets and surplus income of less than £300.
Previously DROs included pensions as an asset – an unusual rule considering other personal insolvency options, such as bankruptcy, did not.
Insolvency practitioners and debt advise businesses were concerned the DRO was excluding those it was designed to help.
Davey, (pictured) said: “The insolvency regime exists to free people from unmanageable debt and support them in making a fresh financial start, subject to some conditions.
“This common sense change will allow those who were previously unable to access a debt relief order, because they had accrued some rights to a pension, fair use of the insolvency regime.”
The amendment to the Insolvency Rules 1986 will take effect on 6 April.
Accountancy Age Jobs is delighted to announce the launch of a brand new look website for finance and accountancy professionals
The UK gender pay gap will not close until 2069 unless action is taken to tackle it now, according to new research by Deloitte
Three former Tesco executives, including the former finance director of Tesco UK, have been charged with fraud by the Serious Fraud Office in relation to a £263m accounting scandal at the retailer.
Deloitte chief executive David Sproul is among 11 chief executives to take part in global executive search firm Odgers Berndtson’s CEO for a Day scheme