Government moves to help the indebted
It seems that the government has decided to take drastic measures in order to help those in huge levels of debt according to a recent report.
The level of debt that many people in the UK are in has been of concern for many years, but in the current financial climate, with the economy suffering and many people unable to cope with their debts, it appears that the government is determine to take action in order to try and help those in debt to avoid further debt and even to start afresh.
Reports have claimed that previously the government was planning to increase powers for bailiffs in order to retrieve money that was owed to companies, but this is a plan that has reportedly been scrapped. In addition to this the government is planning to really crack down on scammers that are preying on vulnerable people who are in debt, and this includes scammer such as those operating fake lottery schemes and investment related scams.
Also, a new programme has been launched this month to help those with a lot of debt to get out of debt and start over, even if they cannot afford the costs normally associated with bankruptcy. These will be known as Debt Relief Orders, and could help many struggling consumers to escape their debts if they are eligible for the programme. The Prime Minister, Gordon Brown, outlined the measures designed to help those in debt last month, and they were also highlighted by the Ministry of Justice.
In his speech the Prime Minister stated: ‘The changes we are dealing with as a country right now are enormous. But we are determined to do our bit – when we see hard-working, hard-pressed people being buffeted about by a storm not of their making, we will never pass by on the other side.’
He added that whilst credit card companies would possibly be banned from sending out credit card cheques and randomly increasing customers’ credit limits as part of his measures, there would be no changes to charging orders, which is where a homeowner could be forced to sell their home in order to pay off a credit card debt.
The Debt Relief Orders that have come into force for eligible consumers could help some people that are struggling with unsecured debt. The DROs will cost little to nothing, whereas bankruptcy can cost up to around £500. To be eligible consumers will have to be earning £15,000 or less and must have assets of no more than £300 in value. They must also have no more than £50 disposable income available each month once their bills and other necessary payments have been made.
The plans to properly regulate the bailiff industry has resulted in the decision to scrap plans to give them increased powers, which is something that will please campaigners and charities such as the Citizen’s Advice Bureau, which has been calling for the government to refuse greater powers to bailiffs.
Tags: Lottery, Insolvency law, investment, economy, debt relief ordersThe CAB said: ‘Private bailiffs used by local councils to collect unpaid council tax are acting almost as a law unto themselves, with devastating effects on people’s lives. Intimidation, harassment and excessive fee charging by bailiffs are driving already vulnerable people deeper into poverty and debt.’
