Post by nickd on May 5, 2012 10:18:18 GMT 1
Debt Relief Orders up by 40% - Young people drowning in debt.
As reported by Daily Mail...
'Bankruptcy light' orders up 40% as graduates battle to find jobs and pay off debts
Graduates battling to find jobs and pay off debts are fuelling a boom in ‘bankruptcy light’ orders. The number of debt relief orders has soared by 40 per cent in two years and one in four are granted to those aged between 16 and 24, figures revealed. The orders – dubbed ‘bankruptcy light’ because they allow people to escape debt quickly – cost four times less than normal bankruptcy orders and last only a year. Families struggling to cope with hikes in bills and food prices are also behind the surge.
Insolvency Service figures revealed 7,897 were granted in the first part of the year – a 40 per cent jump on two years ago and a 7.3 per cent rise on last quarter.
More more: www.dailymail.co.uk/news/article-2139791/Bankruptcy-light-orders-40-graduates-battle-jobs-pay-debts.html#ixzz1tz84QwRN
Mylegal note
Debt Relief Orders can only be approved via approved intermediary agencies such as CAB and money advice agencies, many of which are are currently funded by Legal Aid. Government has voted to withdraw legal aid for this type of debt work with effect from early next year. The Insolvency Service has to approve specialist advisers to process these orders, who will do this once legal aid funding goes?
Government can't see the value in this work despite it being a process which gives young people a better chance of a fresh start which is less dire in consequence than bankruptcy. Debt Relief Orders are also cheaper because they do not need to be filed in Court - saving time and expense.[/b][/color]
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As reported by Daily Mail...
'Bankruptcy light' orders up 40% as graduates battle to find jobs and pay off debts
Graduates battling to find jobs and pay off debts are fuelling a boom in ‘bankruptcy light’ orders. The number of debt relief orders has soared by 40 per cent in two years and one in four are granted to those aged between 16 and 24, figures revealed. The orders – dubbed ‘bankruptcy light’ because they allow people to escape debt quickly – cost four times less than normal bankruptcy orders and last only a year. Families struggling to cope with hikes in bills and food prices are also behind the surge.
Insolvency Service figures revealed 7,897 were granted in the first part of the year – a 40 per cent jump on two years ago and a 7.3 per cent rise on last quarter.
More more: www.dailymail.co.uk/news/article-2139791/Bankruptcy-light-orders-40-graduates-battle-jobs-pay-debts.html#ixzz1tz84QwRN
Mylegal note
Debt Relief Orders can only be approved via approved intermediary agencies such as CAB and money advice agencies, many of which are are currently funded by Legal Aid. Government has voted to withdraw legal aid for this type of debt work with effect from early next year. The Insolvency Service has to approve specialist advisers to process these orders, who will do this once legal aid funding goes?
Government can't see the value in this work despite it being a process which gives young people a better chance of a fresh start which is less dire in consequence than bankruptcy. Debt Relief Orders are also cheaper because they do not need to be filed in Court - saving time and expense.[/b][/color]
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