Monday 30th of March 2009
The introduction of debt relief orders has been welcomed by Citizens Advice.
Prime minister Gordon Brown recently highlighted the forthcoming arrival of debt relief orders as part of a raft of measures he unveiled that are aimed at helping those who are struggling with debt during the recession.
They have been created to support those on low incomes who are unable to go bankrupt, and will apply to consumers who owe less than £15,000 and have become insolvent.
Sue Edwards from Citizens Advice told BBC Radio 4’s Money Box that the introduction of debt relief orders is a positive step.
"They offer people on very low incomes - who cannot pay their debts off within their lifetime - light at the end of the tunnel," she said.
Ms Edwards added that 50,000 people could be eligible for the scheme.
Announced earlier this month, Mr Brown’s plans to help debt-burdened Britons included new rules for credit card companies that will prevent them from raising credit card limits without specific requests from individual consumers.
- Debt relief orders come into effect
- Personal insolvency 'could soar' following introduction of debt relief orders
- Citizens Advice hails debt management help
- Benefits of debt relief orders highlighted
- Prime minister highlights benefits of debt relief orders
- Debt relief orders 'seen as favourable alternative to bankruptcy'
