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Bankruptcy and IVAs On The Up - And DROs too!

Figures published today by the Insolvency Service, show that there were 18,347 bankruptcies during the third quarter of 2009, which is an increase of over 6% from the same period last year.

What the figures do show is that there were a total of 35,242 personal insolvencies, up 28% from the same period last year, which means that 16,895 chose a form of insolvency other than bankruptcy.

These other forms are:

- Individual Voluntary Arrangments (called IVAs by most people). These is an arrangment reached by the individual with their creditors that avoids bankruptcy. The scheme is usually supervisor by an Insolvency Practioner.

- Debt Relief Orders (which are a new option introduced earlier this year). What is different about DROs is that they allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without having to go through the bankruptcy process.

If you require advice on personal insolvency, including bankruptcy, individual voluntary arrangements (IVA) or Debt Relief Orders, please contact Greg Hollingsworth on greg.hollingsworth@bhlaw.co.uk

Bradshaw Hollingsworth provide specialist legal advice in the areas of Employment Law, Litigation, Commercial, Insolvency, Debt Recovery, Wills & Probate and Property, including residential conveyancing, house sales, house purchases and re-mortgages. For more information about our services please contact Greg Hollingsworth of Bradshaw Hollingsworth Solicitors, 19 New Walk, Leicester on 0116 204 2500 or by email at greg.hollingsworth@bhlaw.co.uk.

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