Number of 'bankruptcy light' victims hits record levels
Friday 04 May 2012
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EmailStark realities behind the fight by cash-strapped families to keep themselves out of debt emerged today as the number of people going "bankruptcy light" hit record levels, writes Tony Patey.
The Insolvency Service revealed the number of debt relief orders rose by 7.3 per cent in the first three months of this year compared with the previous quarter to an all-time high of 7,897.
DROs - dubbed "bankrupt light" - were introduced in spring 2009 and are aimed at people who have more modest levels of debt but no realistic prospect of paying it off.
Around one in four people taking out a DRO is aged between 25 and 34.
As the nation enters a double-dip recession the number of bankruptcies rose by 5.5 per cent in the first three months of this year compared with the previous quarter to 9,132 -following a year of decline.
But there was a sharp drop in individual voluntary arrangements (IVAs), which fell by 10.4 per cent on the quarter to reach 11,694.
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