It’s very easy to think, given the current economic climate, the Insolvency Industry is booming. In fact, The Insolvency Service Statistics show that is not necessarily the case.
Concentrating on Individual Insolvencies, the Insolvency Service states the number of Individual Voluntary Arrangements (“IVA”) has decreased by 2.9%. While, bankruptcies have decreased by 20.5% in 2012. The decrease in these two common personal insolvency options may be as a result of the growing awareness and increase in use of the Debt Relief Order (“DRO”) procedure, since its implementation in January 2009. The Insolvency Service estimates that the number of Debt Relief Orders granted has increased by 2.3%. It states that, for the first time ever, DRO figures are now higher than Bankruptcy.
Consideration should be given to a DRO as a viable alternative to Bankruptcy and to an IVA, although the strict criteria for eligibility for a DRO do exclude a significant number of potential applicants. If you meet the criteria, a DRO is an excellent solution to financial worries for individuals who are suffering financial pressures and are not able to raise the fee for Bankruptcy, currently £710.
Author: Karis Hodgkinson