Sunday 17th of January 2010
Debt relief orders (DRO) can allow Britons who need to become insolvent to do so without fear of risking their home or job, it has been suggested.
Speaking to Channel 4’s FactCheck, a spokesperson for the Consumer Credit Counselling Service said DROs are not as "counter-intuitive" as perceived.
While a DRO may leave a mark on a credit reference, this could be a better price to pay than risking losing a home by being declared bankrupt.
There is also less stigma attached with DROs, the charity claims, which could be because lenders are guaranteed to have a larger percentage of their money paid back than what would be received via a bankruptcy.
Bankruptcies are also often reported in local newspapers, whereas DROs could be kept as a personal matter.
"These are only available to people owing less than £15,000 and are intended for people on low incomes with few assets, who might not have met the criteria for bankruptcy or an IVA," the online publication reports.
DROs came into force on April 6th last year.
By Chris King
