Latest figures from the Insolvency Service have revealed that more and more people are entering into Debt Relief Orders.
In total 6295 people have entered into a debt relief order in England and Wales in the second quarter of this year. This represents an 11% rise on the first quarter of 2010 and a huge 218% rise compared with the same period of 2009.
Debt relief orders were introduced by the government as a means of allowing people to apply for personal bankruptcy without having to go through the full court bankruptcy procedure. The order lasts for one year and fees are just £50 making it a much cheaper option that bankruptcy.
However to qualify for one you must fit into certain criteria and so if you are in debt it is recommended that you first get professional advice to find out if a debt relief order is the best option for you.
