Hope for families in deep debt
PROPOSALS in the new Personal Insolvency Bill will bring a glimmer of light for many distressed homeowners and others struggling under a mountain of personal debt.
The new insolvency rules mean that people will be able to agree deals to write down mortgage debt as part of their personal insolvency arrangements. It also offers some hope to thousands of homeowners who can meet their mortgages but are overwhelmed by other debts like credit card loans and car borrowings.
The Government believes it will not lead to an avalanche of people trying to walk away from mortgage debt but will help many to keep their homes. But some experts have also warned that it could also lead to repossessions of around 30,000 properties where mortgages are unsustainable.
It is an attempt to provide a deal for the ordinary citizen in financial trouble.
Only time will tell if it works.