High demand for new form of debt relief in Northern Ireland

Demand in Northern Ireland for Debt Relief Orders was more than double the UK average during the first month of their availability in the region, according to the Consumer Credit C

Related topics:  Finance News
Millie Dyson
22nd August 2011
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DROs - a new form of insolvency introduced in Northern Ireland at the end of June - were recommended to 13.9 percent of people contacting CCCS for help in July. This is far higher than the average rate of around six percent in England and Wales.

The charity says the figures show how successful DROs are proving to be at helping people in severe financial difficulties.  A DRO is a form of "bankruptcy lite", aimed at people with low incomes and low assets who may not be able to afford to petition for bankruptcy. 

To be eligible, a debtor must owe less than £15,000 in unsecured debt, have no more than £300 in assets (excluding one car up to the value of £1000) and have less than £50 of income left over after meeting basic living costs each month.

Debbie Mills, managing counsellor for CCCS Northern Ireland, says:

"The fact that we are seeing more than twice the level of demand for DROs as in other parts of the UK shows how valuable their introduction will be in helping people who are struggling with debt in Northern Ireland.

"With rising prices continuing to push up the cost of living, many people are finding it increasingly difficult to cope at the moment - and our advice to anyone struggling with their debt repayments is to seek free advice as early as possible."
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