Debtors to have their borrowing written off!

zombie

This interesting article was posted in the papers on Sunday:
http://www.thisismoney.co.uk/dealing-with-debt/article.html?in_article_id=441141&in_page_id=62

Anyone with debt issues should read this article.

fermi

Part of that is referring to DROs. See: Q&A

But other Debt Management Schemes will have a more legally binding framework as well I think.

Discussed HERE. Legislation HERE.

fermi

From: Tribunals, Courts and Enforcement Bill: policy statement on delegated powers

Part 5 Debt Management and Relief

236. Part 5 of the Bill makes changes to two statutory debt-management schemes, Administration Orders (Chapter 1) and Enforcement Restriction Orders (Chapter 2).

237. Part 5, Chapter 3, also amends the Insolvency Act 1986 to allow for the introduction of a new form of personal insolvency procedure that entails the making, administratively by the official receiver, of a debt relief order (DRO) on the application of an individual debtor who meets specified criteria as regards his assets, income and liabilities.

238. Chapter 4 of Part 5 of the Bill empowers the Lord Chancellor (or his delegate) to approve Debt Management Schemes (“DMSs”) operated by any body of persons. Approved schemes will be able to arrange Debt Repayment Plans (“DRPs”) for individual debtors. Subject to prescribed restrictions, schemes will in effect be able to compel creditor participation (if the majority are in favour of a plan being arranged) and plans will be able to compose (i.e. reduce or partially write off) debts. These schemes could be operated by a variety of service providers. Existing providers of debt management advice and assistance do not have the power of compulsion and composition. In future, they will be able to choose whether to offer an ‘approved scheme’ as part of their service.

239. It is intended that DRPs will sit alongside and complement statutory schemes, such as Administration Orders (“AOs"), DROs, bankruptcy and Individual Voluntary Arrangements (“IVAs”). The intention is to provide a range of options giving more choice and flexibility to assist the rehabilitation of overindebted people. The most appropriate scheme to use will depend on the particular circumstances

mummum2

Wow, that could be excellent news for all of us on DMP's. I and I think the majority of DFW's want to pay off our debts, but it does not help with creditors adding interest again in 6, 12 month or 2,3 years. If I'm reading correctly, we can have our interest frozen, more importantly no 'high blood pressure' with endless calls and get this 'noose' away from our necks and pay back what we borrowed.

If that's the case, I'm a very happy bunny.

DFW's unite