Published: 12 August 2008
Debt Schemes could ease Repayment Pains
People who find themselves unable to repay their debts are being urged to seek advice with money problems to avoid getting too deep into debt.
In County courts, people at risk of being evicted from their home as a result of possession proceedings can get advice & support while posters giving people details of free advice providers to assist them with their debt problems are on display.
The Government is also pressing ahead with plans for creditors to give people owing them money information on how to contact them to discuss problems, including details of independent free advice providers in a letter before taking legal action, helping them to avoid court.
Proposals to give judges powers to issue Enforcement Relief Orders to give people who have temporary financial difficulties a short break from repaying a debt where there is clear evidence that their circumstances will improve within a short period are also being considered, following consultation in June.
Justice Minister Bridget Prentice said:
"Our message today is simple: don't bury your head in the sand. The right help at the right time can make the difference between losing your home and keeping it.
Being in debt can bring misery to a lot of people, but losing your home on top would be harder still. That is why I am so pleased to see a scheme that stops people from sliding into deeper and deeper debt.
A debt advice scheme in Norwich is already transforming the lives of people struggling to pay their rent and in danger of losing their homes, by negotiating repayment plans suitable to them and their landlords.
The scheme - run by the Norwich County Court, Norwich City Council and the Norfolk Community Law Service - also helps people avoid getting deeper into debt by incurring court costs, and the stigma of a court appearance.
People in council rent arrears are invited by the court to attend a meeting with an advisor from the law service in the court buildings.
During the meeting, contact can be made with a council rent officer to take part in negotiating the repayment, and also with a housing benefits officer to see if the client is missing out on any entitled benefits.
Bridget Prentice said:
"The scheme reaches out to people who may simply have felt overwhelmed by the rent arrears, not realising they can talk to the rent office about any problems they are having."
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