Posted: Thu Jan 17, 2008 5:50 pm
I just heard an item on BBC Radio regarding a new "Consultation Paper" issued by the government (Ministry of Justice) regarding a possible new procedure called an "Enforcement Restriction Order". Apparently the idea is that people who are unable to repay their credit cards / loans etc. due to a sudden change in personal circumstances will be able to apply to their local court for an "ERO" which - if granted - will require creditors to "freeze" the debts for a period of up to one year to enable the debtor to try and get back on an even keel. There was a lady from CCCS being interviewed but my phone went and I missed a lot of what was said.
I looked on the Ministry of Justice website (www.justice.gov.uk) and details of the consultation paper (and a copy of it) are on there. It covers two things - changes to an Administrative Order (already in existence) for people with very low debts and the proposed new "Enforcement Restriction Order". It does not seem to specify what the upper limit for the proposed new ERO will be but it seems that there may in the future be another possible solution for debtors who are able to turn around their financial problems within a year!! HOWEVER - this is only a consultation paper - so it will probably be ages and ages before anything comes to fruition. Interesting though.
I looked on the Ministry of Justice website (www.justice.gov.uk) and details of the consultation paper (and a copy of it) are on there. It covers two things - changes to an Administrative Order (already in existence) for people with very low debts and the proposed new "Enforcement Restriction Order". It does not seem to specify what the upper limit for the proposed new ERO will be but it seems that there may in the future be another possible solution for debtors who are able to turn around their financial problems within a year!! HOWEVER - this is only a consultation paper - so it will probably be ages and ages before anything comes to fruition. Interesting though.