Insolvency: A new species of debt relief for debtors

On 6 April 2009 a new species of debt relief for debtors was created. Affecting debtors with low debts (less then £15,000), surplus income (disposable income of less than £50 per month) and assets (under £300). This is a cheaper option to bankruptcy and does not require the sanction of the courts.

With some similarity to the rules on bankruptcy this may be an avenue to Official Receivers and other appointees where there is limited funding available from the estate to cover the professional and other costs of recovery. Similar rules apply such as Debt Restriction Orders and Undertakings restricting the actions of the debtor during the period of the disability. In the same way with bankruptcy debtors period of disability can be extended if necessary where the debtor has in some way contributed to his/her financial situation.

If you would like to discuss about Insolvency & Corporate Recovery please contact Brendan O'Brien on 01279 715333.