Monday 8th of February 2010
Debt relief orders (DROs) appear to be a popular way for those Britons with smaller amounts of debt to repay what they owe.
A new report by the Insolvency Service reveals that during the fourth quarter of 2009, 5,348 DROs were undertaken by Britons.
For the whole of 2009 there were 11,831 DROs undertaken. These types of repayment plans are available to people who owe less than £15,000 and who may not meet the criteria for bankruptcy or an individual voluntary arrangement (IVA).
Those who asked questions on IVAs to see if they were suitable for their circumstances may have been told that a DRO would be a better option if their debts were smaller, although DROs do still leave a mark against a person’s name.
"Since their introduction last April, DROs have continued to be a popular means of dealing with smaller levels of personal debt," explains partner and personal insolvency expert at PricewaterhouseCoopers Pat Boyden.
He adds that this trend will continue throughout 2010.
By Ashley Littley
