On 21st July 2016 bankruptcy fees were increased. This had been announced a few weeks earlier by the Insolvency Service, see changes to the bankruptcy fees. The important change for people who are going to go bankrupt themselves (in legal jargon "petition for their own bankruptcy") is that the bankruptcy deposit fee is now £550, an increase of £25. This is in addition to the current … [Read more...]
Debt news and policy
Debt Camel articles on what's happening in the world of personal debt in Britain.
For my collections of other news items, please see Weekly News Summaries.
The Council for Mortgage Lenders(CML) has recently provided an update on how the stock of existing interest only mortgages is changing. In 2012 lenders increased their efforts to make contact with the holders of interest only (IO) mortgage, aiming to ensure that as many borrowers as possible can repay the mortgage at the end of the term. So now in 2106 we can see whether this is working. How much … [Read more...]
The government is planning to introduce a Help to Save scheme to encourage people on low incomes to build up a rainy day fund. It is consulting on the details of the scheme and asking for responses by 21 July 2016. I have looked before at whether you should save an emergency fund or repay debt, and at the importance of saving for people in a DMP, IVA, DRO or bankruptcy. So I am very interested … [Read more...]
Varden Nuttall, a mid-size Individual Voluntary Arrangement (IVA) firm, were placed into administration on 24 March 2016. They were the twelfth largest in the "2015 IVA League Table", when they took on 765 new IVAs. From the Statement of Administrator's Proposals on 3rd June 2016, the firm has about 2,500 IVA customers. They also had about 300 Trust Deeds (a Scottish form of insolvency) and … [Read more...]
A lot of people may be told this summer that their Debt Management firm is closing. If this happens to you, your reaction may be alarm - for many people their Debt Management Plan (DMP) rescued them from a difficult financial situation and they are very happy with the monthly payments they are making. This article looks briefly at why these closures are happening, but concentrates on the … [Read more...]
In April 2016, a new online Bankruptcy Application was introduced in England and Wales, replacing the previous process of going to court with a "petition" to become bankrupt. Instead of being approved by a judge, when you submit the Application it is checked by the Insolvency Service Adjudicator who makes the Bankruptcy Order. As a result more people are now choosing bankruptcy. In the third … [Read more...]
The gov.uk website has a new section on debt advice. It asks four simple-sounding questions: where in the UK do you live? do you owe more than £20,000? do you have assets (things you own) worth more than £1,000 in total? do you have at least £50 left over every month after paying your household bills and living expenses? Based on your answers, it then suggests which of a DMP, an IVA, … [Read more...]
On 21st March 2016 some County Court fees were increased significantly. There was a consultation by the Ministry of Justice in January 2015 on fee increases and the responses were almost all negative. The government however decided to go ahead with the proposed increases, with the exception of scaling back the proposed divorce fee changes. This articles looks at the two areas that will most affect … [Read more...]
In March 2016, the clients of Compass Debt Counsellors found out their debt management firm had gone into administration. Many people had thousands of pounds being held by Compass and may not get this money back. In This Compass points to Debt Misery, Legal Beagles points out: "This form of daylight robbery is hugely rewarding because no one ever seems to go to prison for such crime. If I … [Read more...]
In March 2016 another debt management firm, Compass Debt Counsellors went into administration. For its clients the best case is that they have the hassle of finding another DMP provider. But many will have lost hundreds or thousands of pounds, where Compass was holding some of their money and hadn't yet paid it to the creditors. There is a discussion here where several Compass clients are … [Read more...]