Friday 5th of November 2010
Individuals facing financial crisis are increasingly turning to Debt Relief Orders (DROs) in order to resolve their monetary problems, a study has found.
An analysis of personal insolvency statistics compiled by RSM Tenon Tracker found in the third quarter of the year, 6,900 people had filed for a DRO.
This represents a ten per cent increase on the record levels reported in the second three-month period of 2010.
Mark Sands, head of bankruptcy at the group, said he is not surprised that more Brits are now turning to DROs as a way to clear their debts as they offer an individual a cheaper method than declaring bankruptcy.
"The continued increase in DROs also suggests that people are being more proactive in addressing their troubles before they spiral out of control and require more extreme solutions," he added.
Last week, Mr Sands anticipated that as a result of the government's comprehensive spending review, the number of people becoming insolvent would rise.
By Kimberley Parsons
