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Debt in Swindon `on the rise` New debt management option "a positive step" Consumers `should get advice over IVAs, bankruptcies and DROs` Women `less likely to file for bankruptcy` Councils `filing for bankruptcy for those who fail to pay tax` Consumers lying about finances Rise in bankruptcies revealed Scottish bankruptcies on the rise, new figures suggest Borrowers `accruing more debt before seeking IVAs` Bankruptcies `high in south-west` Landlord bankruptcy enquiries `on the up` Increase in bankruptcy figures for another CAB Bankruptcy "best option" for some households 90% "choosing to `jump before they were pushed`" R3: Bankruptcies and IVAs to rise over next 12 months Insolvencies rise for automotive companies Fuel price hike sparks bankruptcy fears London bankruptcies have "quadrupled" Government department identifies fall in bankruptcy levels Insolvency figures `hide true extent of debt problems`

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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