Monday 30th of November 2009
Debt relief orders (DROs) can be ideal for those Britons in debt who may not be a suitable candidate for other financial solutions, it has been reported.
Writing for the Financial Times Adviser, Michael Green, national head of restructuring and insolvency for law firm Weightmans, says after much support from groups such as the Citizens Advice Bureau, DROs came into force on April 6th this year.
DROs are delivered in partnership with debt advisers and last up to one year. Furthermore, borrowers who are concerned about being chased by creditors and threatened with legal processes are safe in the knowledge that action cannot be taken against them.
As long as people meet the required criteria and pay a small fee, no court involvement should be necessary, Mr Green explains, which could be reassuring to hear for people who are worried about the consequences of admitting to needing debt help.
"DROs are aimed at the lower strata of debtors. They are an attempt to reduce the number of ‘full’ bankruptcies and push those at the lower end down the DRO route instead," he adds.
The Insolvency Service recently reported that the uptake of DROs has increased during the economic downturn.
By Kim Parsons
