StepChange Debt Charity response to insolvency statistics

April 29, 2016

In response to the release of today’s insolvency statistics, Peter Tutton, Head of Policy at StepChange Debt Charity said:

“The increase in debt relief order (DRO) numbers is reflective of how by making positive changes to debt solutions in order to make them better fit the needs of those in financial difficulty, more people can access the support that helps get them back on their feet.

“The slight decline in the numbers of bankruptcy orders and Individual voluntary arrangements (IVAs) is set against the backdrop of extremely high demand for debt advice that we are currently experiencing. These figures further highlight how the current set of statutory options available to people in debt are not meeting their needs.

“People experiencing temporary debt problems need protection from spiralling debts and debt collection practices that only increase stress and hardship. But insolvency options can be unsuitable in these circumstances, so people are falling through gaps in the protections they need.

We urge the government to consider the introduction of a ‘breathing space’ scheme for people in this situation in its upcoming review of the legal framework for debt administration in England and Wales”.