Debtors 'need more time' to consider insolvency options

A period of breathing space should be offered to people entering insolvency to help them consider all the debt solutions that are available to them, it has been suggested, which might affect those in credit card debt.

According to the Association of Business Recovery Professionals (R3) president Steven Law, people should be required to speak to a professional financial adviser before they opt for an insolvency procedure.

He stated: "We believe an assured moratorium from the court for up to 28 days would provide a breathing space for debtors to consider every option and enjoy a respite from creditor pressure."

At the moment, R3 believes that the insolvency solutions that people opt for may not always be the ones they were most suited for.

Some people who are made redundant by their employer may be forced to consider personal insolvency, Mr Law noted last week, following the publication of the UK's latest official unemployment statistics.

Posted by Gemma Walker.