Debt Relief Orders: April 2009
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In April, the government plans to introduce a new system to help those with relatively small debts avoid full bankruptcy proceedings. See Debt Relief Orders; thr 3rd below.
Bankruptcy:
The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets including your house to pay something to the creditors
Individual voluntary arrangement (IVA):
A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go or over a number of years
Debt Relief Orders:
Planned for introduction in April 2009, these should allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without a full-blown bankruptcy
