Monday 10th of August 2009
The first Insolvency Service quarterly statistics to incorporate figures relating to Debt Relief Orders are "encouraging", the government body claims.
Nearly 2,000 people are recorded as having qualified for Debt Relief Orders in the second quarter of 2009.
The Insolvency Service claims that this is likely to have stopped some from declaring bankruptcy - although there are no official figures to support this particular suggestion.
Graham Horne, deputy chief executive of the Insolvency Service, says: "There are more options these days for those struggling to repay their debts."
"Although entering bankruptcy or an IVA is a serious step to take, for many it is the best option," he adds.
With Debt Relief Orders, individuals with limited debts and a low income can eliminate what they owe in around 12 months.
Meanwhile, IVAs can help to tackle more substantial debts from a number of different lenders over a period of around five years.
By Neil Burton
