The number of people going into a type of personal insolvency known as “bankruptcy light” increased during the first three months of 2016, official figures show.
The Insolvency Service said 6,722 debt relief orders (DROs) were taken out between January and March across England and Wales – marking a 3.4% increase compared with the previous three months and 8.2% higher than the same period a year earlier.
The upswing was due to a change in the eligibility criteria for DROs in October 2015, its report said.
Previously, only people with debts below £15,000 could apply for a DRO but in October last year the limit was increased to £20,000, enabling more people to use DROs as an alternative to going bankrupt, which is often seen as a last resort…
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