Debt management firms to be regulated

According to news, Debt Management Firms are to be regulated. We At Ashley Longmann Associates Welcome this move.

For Further information on IVA's , Bankruptcy , Debt Management Plans or other Debt Help please call us today on 01291 671449 or Fill in our 60 Second Survey for instant Help.

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The government has proposed a consultation to look into the regulation of debt management companies, the number of which has grown significantly over the past years but are still largely unregulated.

Debt management companies act as a go between for customers who have debt problems with their creditors and come up with debt solutions such as reduced repayment terms and Individual Voluntary Arrangements.

The insolvency sector has also been widely criticised for charging customers large additional fees for their services and misleading consumers by claiming to be able to write off debts that were taken out before April 2007, under the 1974 Consumer Credit Act. However, in most cases, the credit agreements will still be valid unless certain information is missing.

Government officials have stressed that this is not a crackdown on debt management practices but, realises the need to monitor the sector closely, in order to check if customers are receiving the help they need to manage their debt problems.

The consultation is likely to go ahead in December and will look at whether the sector will remain as it is, or whether to implement a new code of practice for companies or to bring debt management under a formal regulation service.

The government is expected to make a statement about its decision in January 2010 after the conclusion of the consultation.

Personal insolvency at new record High

According to the BBC published article Personal insolvancy has reached an all time high.

"The number of people being declared insolvent has hit a new record in England and Wales.

There were 33,073 personal insolvencies in the second quarter of 2009, said the government's Insolvency Service.

That was a 9% rise on the first three months of the year, and 27% more than in the same period last year.

The number of companies going bust in England and Wales continued to fall, down by 14% on the previous quarter but still 23% higher than a year ago.

"Overall [personal insolvency] levels will continue to increase throughout 2009, with a record level of 140,000 or more expected by the end of the year," predicted Mark Sands of the insolvency experts Tenon Recovery. "

the full article can be found here.

http://news.bbc.co.uk/1/hi/business/8189053.stm

What are your options?
below are some of the options you can explore if you are facing debt.

Debt Management Plan:
Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets including your house to pay something to the creditors

Individual voluntary arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go or over a number of years

Debt Relief Orders: Introduced in in April 2009, these allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without a full-blown bankruptcy