Whilst there are many debt solutions which can help individuals circumvent insolvency in the UK, the two most prevalent methods are IVAs and DROs. However, of the two, Individual Voluntary Arrangements have been utilised more frequently than Debt Relief Orders. There are a number of reasons for this but the most prevalent is that very few people actually qualify for DROs.
If you owe more than £15,000 and make more than £50 per month you would not be able to take advantage of a DRO. Also, if you have any assets worth more than £300 you would be disqualified. These assets include homes, cars and other tangible assets. Because of this, an IVA is the most sought after debt solution to avoid bankruptcy. Of course there are people who have lost their jobs and are not making more than £50 per month, but many of them own property or at least have a vehicle worth more than the maximum £300 amount.
When looking for a solution to debt problems, it is always in your best interest to seek the advice of a certified IP. Insolvency Practitioners can represent you in a court of law and are bound by UK regulations to always act in your best interest. If you are overwhelmed by debt and are seeking a viable alternative to going insolvent, online IPs such as debtfreeme can help find the solution which works best for you in your particular set of circumstances. Bear in mind that the top 2 ways in which to avoid bankruptcy are IVAs and DROs but of the two, only IVAs are available to the majority of consumers. Debt Free Me can help you determine which solution is best and can go about representing you with your creditors and the courts.