Tuesday 10th of August 2010
Debt relief orders (DROs) might prove to be a more suitable - and cheaper - alternative to bankruptcy, one specialist suggests.
Head of research and policy at the Money Advice Trust Louisa Parker explains the method appears to be growing in demand among those with debts worth less than £15,000.
This is highlighted by recent Insolvency Service data that shows there have been 23,770 DROs carried out since their inception in 2009.
Ms Parker comments the method means “those with debts under £15,000 with little income or assets can consider a cheaper option to going bankrupt”.
An individual voluntary arrangement may, however, offer assistance to people with more unsecured debt and who owe cash to three or more creditors.
The specialist made her remarks after it was revealed the Duchess of York Sarah Ferguson could be facing bankruptcy.
Ms Parker adds: “Coping with unmanageable debt is a difficult experience no matter what your background.”
By Neil Burton
