Thursday 4th of June 2009
The number of people being approved for debt relief orders is far below the level that was predicted, it has been suggested.
According to Accountancy Age, insolvency practitioners believe that only 50 to 70 debt relief orders have been approved since they were introduced in April.
The measure was introduced to serve as an alternative to bankruptcy, aimed at those owing no more than £15,000 and with assets of less than £300.
But an Insolvency Service spokesman told the publication that pensions count as assets and are taking many people over the threshold - preventing them from being able to access debt relief orders.
Mark Sands, personal insolvency director at KPMG, suggested that changes will need to be made in order to "meet the needs of the over-indebted".
Consumer campaign group Which? welcomed debt relief orders upon their introduction, stating that the reduced fees mean they will provide help to those on low incomes.
