Sunday 28th of February 2010
Debt relief orders (DROs) are in the government spotlight after it announced that it plans to allow more people to use this type of repayment option to clear their debt.
Individuals with unsecured debts, but who want to avoid the negative consequences of going bankrupt, may prefer the idea of DROs.
Business minister Ian Lucas praises the use of DROs and said that people with very small pension pots may be able to embark on one in order to get their finances back on track.
"DROs help people who would otherwise be trapped in poverty to get back on their feet," he stated.
He added that bankruptcy charges may also rise in the future to ensure that creditors get more of their money back earlier on.
With the cost of going bankrupt potentially increasing, DROs could be ideal for Britons with smaller debts who want to do their best to repay what they owe so they can make a fresh financial start.
A recent report from the Insolvency Service revealed that 5,348 DROs were undertaken by Britons during the fourth quarter of 2009.
By Mark Waterman
