Money Advice Trust responds to review of personal insolvency framework
The Money Advice Trust has welcomed the Government’s response to the Insolvency Service personal insolvency call for evidence.
Posted August 4, 2023
The Money Advice Trust, which runs National Debtline and Business Debtline, has welcomed the Government’s response to the Insolvency Service personal insolvency call for evidence but says that action is needed now to help people struggling to access safe routes out of debt.
The Government’s call for evidence on its review of the personal insolvency framework in England and Wales ran from July 2022 to October 2022. Today’s publication is a summary of responses to that call for evidence and outlines the Government’s next steps. Proposals for reform of the personal insolvency framework are expected to be published by the Government in early 2024.
Jane Tully, director of external affairs and partnerships at the Money Advice Trust, said:
“Today’s response to the review of the personal insolvency framework represents a welcome acknowledgement that reform of current debt options is long overdue. I am encouraged by the Insolvency Service’s findings that fees attached to Debt Relief Orders and bankruptcy options can be a barrier to people accessing vital support, something we have continued to highlight.
"With millions of households already struggling due to the impact of high costs, tackling these barriers, to ensure people are able to access safe routes out of debt, is now more important than ever. We urge the Government to bring in reform as soon as possible.
“However, action is needed now to help people struggling to access suitable debt options due to fees, especially as the cost of living continues to pile on more pressure.
“I would encourage anyone worried about their finances to contact National Debtline as soon as possible.”
National Debtline provides free, independent advice. Contact us on 0808 808 4000 or via www.nationaldebtline.org.
