Consumers `should get advice over IVAs, bankruptcies and DROs`
02/04/2009
People who are struggling with debt problems should seek advice, it has been claimed.
Commenting on the issue, Which? said that while bankruptcy, Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs) could be good solutions, consumers should solicit advice in order to ensure they opt for something that best suits their requirements.
The organisation made its comments in anticipation of the launch of DROs, which will be available from April 6th.
Such orders are designed as an alternative to bankruptcy and IVAs and will be available to debtors with low incomes and assets.
According to Citizens Advice chief executive David Harker, DROs will offer hope to consumers struggling with debt.
He added: "The alternative is that they are condemned to a lifetime of poverty overshadowed by an inescapable burden of unmanageable debt."
In order to qualify for DROs, debtors` total unsecured liabilities must not exceed £15,000 and their assets must not be greater than £300.
Meanwhile, their disposable income must not exceed £50 per month.
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