More people have become insolvent in the past year than ever before, with 35,574 personal insolvencies in the last quarter of 2009 alone, according to official figures, and a new product – the Debt Relief Order – is gaining pace on traditional methods of dealing with debt, and could help you.
Debt relief orders – introduced last April – accounted for just 11,831 of the 162,613 total insolvencies for 2009. But the number of people using them from the second quarter of last year to the end of the year grew a massive two and a half times.
Debt relief orders have got lenders in a spin because anyone granted one will have their debt discharged after a year. The creditors are unhappy because they think they are too easy to get.
They are losing money because the debts are wiped out so quickly – bad news for them, but great news for anyone struggling under the burden. The debt relief order costs just £90, and will help you deal with debts of less than £15,000.
To qualify for a debt relief order, you cannot own your home, must have less than £300 in assets and a disposable income of no more than £50 …
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