Views sought on the personal insolvency framework
Released On 13th Jul 2022
The Government has launched a call for evidence in England and Wales, seeking stakeholders’ views and evidence on the personal insolvency framework and whether it serves the needs of debtors and creditors in the 21st century.
The UK’s current personal insolvency framework aims to help people repay their creditors using a procedure appropriate to their situation. But the last fundamental review of personal insolvency was 40 years ago.
Business Minister Lord Callanan said when the call launched on 5 July, in situations where people cannot repay borrowed money, it is vital to have a fair system for them and their creditors. So, it is only right that the Government should examine whether it works as effectively as it should in today’s world.
The Government is therefore seeking the views of those who have experienced debt or an insolvency process, creditors and their representatives, trade bodies, debt advisers and charities, insolvency practitioners, recognised professional bodies, academics, and any other interested parties.
The call for evidence seeks views on what the objectives should be for a modern insolvency framework and where the balance should fall in providing debtors with a fresh start and ensuring returns to creditors.
The Government is also looking for views on how insolvency solutions should be paid for and if the current burden of costs are apportioned fairly. Finally, they want to know whether stakeholders believe the framework to be sufficiently flexible and whether it provides the right sort of insolvency solutions for the modern-day.
The consultation is open until 11.59 pm on 23 October 2022
For help and advice on related matters, please contact our Insolvency Director and Appointment Taker Richard Warwick today.
