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Debts

Volume 495: debated on Tuesday 30 June 2009

To ask the Minister of State, Department for Business, Innovation and Skills whether the Government plan to introduce a (a) debt arrangement scheme and (b) low income low assets bankruptcy scheme. (281586)

Addressing financial problems at an early stage is essential to identifying a sustainable solution to an individual’s problems. Part 5 of the Tribunals, Courts and Enforcement Act (TCEA) 2007 contained a series of measures to support those debtors for whom the current statutory provisions of bankruptcy and individual voluntary arrangements may not be the best option.

One of these was a low income, low asset bankruptcy scheme, which was introduce into the Insolvency Act 1986 on 6 April 2009 and is known as a Debt Relief Order (DRO).

The TCEA 2007 also contains powers for the Lord Chancellor to introduce statutory debt management schemes that could have similar features to the debt assistance scheme.

The implementation of part 5 of the TCEA 2007 is currently being reviewed and an announcement is expected to be made shortly.