New government initiative to tackle debt
Published On 20 January 2008
People struggling with debt may be able to suspend their payments for up to a year, the government has announced.In a consultation paper published on January 16th, the Ministry of Justice set out new court measures which could permit those in debt to take a "repayment holiday".
The new Enforcement Restriction Order is aimed particularly at people with several low value debts and those who have experienced a sudden change in their financial circumstances, such as a divorce or bereavement.
Commenting on the new initiative, civil justice minister Bridget Prentice said: "Debt's a problem that can affect anyone at any time - unexpected costs can hit even the most diligent and careful person. We want to ensure that people who run up debts are given every possible opportunity to pay them off."
She added: "The new measures will help people avoid getting deeper and deeper into debt by providing a balanced approach to the problem. It will help those who genuinely can't pay and are looking for a way to manage their debts effectively."
The administrative order is restricted to those with debts totalling a maximum of £15,000.
