Government consults on Debt Management Plans but County Court IT systems hold up delivery of real assistance for debtors

The Ministry of Justice, Department for Business, Innovation and Skills, and the Insolvency Service have launched a joint consultation over the potential need to place debt management plans on a statutory footing in order to improve the assistance to indebted households. At the present time many people in debt enter into voluntary debt management plans but are unable to get a proportion of their debts written off as they may be able to through a statutory scheme. As a result many of the Debt Management Schemes that are entered into are not sustained.

In the consultation paper, Government also indicate that other possible sources of assistance - which formed part of the Tribunals, Courts and Enforcement Act 2007, such as Enforcement Restriction Orders which would have provided people with the opportunity of obtain a moratorium on debt recovery for up to a year - will not now be implemented until 2011 at the earliest due to the need to replace County Court IT systems.

Dood will be making a full response in due course, but the delay over the introduction of Enforcement Restriction Orders is clearly disappointing and fails to fit with Government's commitment to provide 'real help now'. Alternative approaches may therefore need to be found - for example by the Treasury insisting that lenders who have received tax payer bail outs now offer moratoriums on debt collection for up to 12 months where someone has recently been made unemployed.

Government urged to bring forward introduction of enforcement restriction orders

Debt on our Doorstep and John Battle M.P have teamed up in a bid to get government to bring forwards the introduction of enforcement restriction orders. The Tribual, Courts and Enforcement Act passed by Parliament in 2007 contains provisions for the county courts to make the orders were a debtor's financial circumstances have significantly worsened since taking out credit, and allow for debt recovery action to be suspended for up to 12 months. With rapidly rising levels of redundancies and unemployment, the orders would provide real help now to many households struggling to cope with the recession.

However, following a parliamentary question from John Battle to Bridget Prentice at the Ministry of Justice, it would appear that the introduction of enforcement restriction orders is not scheduled until 2010.

We believe that is far too late and urge government to act now.

John has put down an Early Day Motion on the subject which is available from the link below. Please write to your M.P and urge them to add their signature.

http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=37814&SESSION=899

Consultation on Administration Orders: Weakening Protection?

The Ministry of Justice is currently consulting on proposals to limit the types of debts that can be included in future Administration Orders as part of its wider review of assistance to people in debt problems, which will include the introduction of Enforcement Restriction Orders.

The consultation paper includes proposals to weaken the assistance available to debtors by excluding rent arrears, council tax, and magistrates fines arrears from future Administration Orders.

Debt on our Doorstep will be responding, and welcomes input from Money Advice Agencies and other community groups. The full consultation paper is available from:

http://www.justice.gov.uk/docs/cp0108.pdf

The deadline for responses is 16th April and we would welcome comments from supporting agencies to inform our response by 31st March.

ITV Need You!

Problems with debt?

ITV is making a programme about debt and its affect on families.

Are you struggling to make the repayments on the credit you owe?
Have you got the debt collectors at the door?
Are you tired, angry, upset and feel you have nowhere else to turn for help?

We would like to hear from you.

Please contact, IN STRICT CONFIDENCE:
020 7737 8455childissues@granadamedia.com

Download a copy of their flyer for your noticeboard here

Petition Against Bailiff Violence

Peter Bardsley, the Chairman of a Credit Union and a development worker in one of the poorest areas in Manchester has posted a petition against Bailiff Violence on the Downing Street website. The Petition is reproduced below. Debt on our Doorstep is urging all supporters to sign it.

This morning there are 1557 signatures.

The committee stage of the Tribunals Courts and Enforcement Bill starts in the House of Commons on the 15th March. The members are.

Vera Baird, Mr Henry Bellingham, Mr Richard Benyon, James Brokenshire, Mr David Drew, Mr Tobias Ellwood, Mr Robert Flello, Mr Michael Foster (Worcester), Simon Hughes, Mr David Kidney, Sarah McCarthy-Fry, Judy Mallaber, Dr Doug Naysmith, Mr Brooks Newmark, Anne Snelgrove, Emily Thornberry and Jenny Willott.

An amendment to the Bill which will restore the right to refuse entry to bailiffs has been proposed by Dood Member Zacchaeus 2000. This has been sent to every member of the committee; it will be tabled.

DOWNING STREET PETITION

http://petitions.pm.gov.uk/Bailiff-Violence

We the undersigned petition the Prime Minister to restore the ancient rights of British citizens to refuse the forced entry of bailiffs.

Background
On the 06 July 2004 Standing Committee E considering the Domestic Violence, Crime and Victims Bill, the Parliamentary Under-Secretary of State for Constitutional Affairs did not tell the Committee that they were abolishing the rights of citizens to refuse entry to bailiffs established in around 1300, confirmed in Semayne’s case in 1604, and upheld by the courts ever since. The Committee was not informed that it was abolishing centuries of common law. Neither was the measure introduced or debated on the floor of the House of Commons. We demand this fundamental right to freedom from the threat of violence in our own homes be reinstated, and safeguarded for the protection of future generations.