StepChange Debt Charity response to Insolvency Statistics – October to December 2015 (Q4)

29 January, 2016

Following today’s release of the latest Insolvency Statistics by the Insolvency Service, Peter Tutton, Head of Policy at StepChange Debt Charity, said:

“These figures show that insolvencies are falling, but the number of people using these schemes can depend on how suitable they are. Many people who would benefit from bankruptcy for example simply cannot afford the fees.

“The rise in debt relief orders is most likely because of recent reforms that make this help available to more people. This shows that when statutory debt remedies are better tuned to what people in financial difficulty need, more of them can be helped.

“It is also important to remember that the job is far from done. Over half a million people contacted us for debt advice last year and insolvency was only suitable for around 20% of them. This leaves the vast majority still very much in need of urgent help and protection from the devastation that debt can cause.

“The Government now needs to turn its attention to the long awaited review of an ‘extended breathing space guarantee’. If people in financial difficulty had the option of protection from interest, charges and enforcement action, it would help them regain control of their finances more quickly and with less damage to their lives.”