Home > News > Bankruptcy

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`

New debt management option "a positive step"

17/04/2009

A new debt management option has been described by one expert as "a positive step".

Commenting on the introduction of Debt Relief Orders (DROs), R3 president Nick O`Reilly said they will help in the fight against poverty by releasing consumers who are trapped in debt problems.

Available since April 6th, DROs are designed as an alternative to bankruptcy and Individual Voluntary Arrangements (IVAs) and are intended for debtors with low incomes and assets.

Mr O`Reilly said: "This is particularly important as the recession deepens, redundancies increase and employment is increasingly difficult to find."

However, he added it is possible that the government may underestimate demand for DROs and may therefore not have enough resources for the regulator to conduct "stringent fact-checking" in order to prevent abuse of the system.

Mr O`Reilly went on to recommend that people who opt for DROs are given financial education to prevent them falling back into debt problems.

Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according Rising household costs could pressure people in debt 10/08/2010 - The UK may be about to see a rise in