Parliament's new proposal for dealing with the countries debt issues looks to be nothing but window dressing. I am informed that it is a bad idea, badly done, that will bring very little benefit to anybody.
The idea behind debt relief orders is a slimmed version and less formal version of debt management (IVAs and bankruptcy), which is not implemented by the courts but by the insolvency service.
The problem is that the profile for a debt relief order is so narrow that very few people would qualify for one. A contact in the industry states that 'Only a tramp would qualify for a Debt relief order,' and also 'The range of organisations which can offer debt relief orders is so narrow that obtaining one may be very difficult'.
To obtain a Debt Relief Order you need to fulfil the following criteria: have less than 15,000 pounds of debt, have assets of less than 300, have less than 50 per month of disposable income, and the inability to pay your debt.
Needing to have assets of less than 300, (which is about the equivalent of a good CD collection), would eliminate over 95% of the UK population. The combination of the other criteria would put that figure over 99.95%. So the UK government has created a scheme which nobody qualifies for, which will benefit no one, and bring no tangible result.
Westminster in its wisdom has only empowered six organisations to be able to complete Debt Relief Orders, five of which are not for profit organisations. However, one is a commercial debt management company. How is this justified? Is this not a case of public regulation creating a monopoly?
Any private company who is appointed to offer Debt Relief Orders , will never make significant profit from completing a DRO as the fees are slow, it is certain most clients applying for a DRO will not qualify and they will be sold IVA's, Debt Management Plans or Bankruptcy services.
We see not only parliament acting in an inefficient and wasteful manner, but in a way that seems commercially biased , corrupt, and looking after the interests of but one company within the debt management marketplace.
The idea behind debt relief orders is a slimmed version and less formal version of debt management (IVAs and bankruptcy), which is not implemented by the courts but by the insolvency service.
The problem is that the profile for a debt relief order is so narrow that very few people would qualify for one. A contact in the industry states that 'Only a tramp would qualify for a Debt relief order,' and also 'The range of organisations which can offer debt relief orders is so narrow that obtaining one may be very difficult'.
To obtain a Debt Relief Order you need to fulfil the following criteria: have less than 15,000 pounds of debt, have assets of less than 300, have less than 50 per month of disposable income, and the inability to pay your debt.
Needing to have assets of less than 300, (which is about the equivalent of a good CD collection), would eliminate over 95% of the UK population. The combination of the other criteria would put that figure over 99.95%. So the UK government has created a scheme which nobody qualifies for, which will benefit no one, and bring no tangible result.
Westminster in its wisdom has only empowered six organisations to be able to complete Debt Relief Orders, five of which are not for profit organisations. However, one is a commercial debt management company. How is this justified? Is this not a case of public regulation creating a monopoly?
Any private company who is appointed to offer Debt Relief Orders , will never make significant profit from completing a DRO as the fees are slow, it is certain most clients applying for a DRO will not qualify and they will be sold IVA's, Debt Management Plans or Bankruptcy services.
We see not only parliament acting in an inefficient and wasteful manner, but in a way that seems commercially biased , corrupt, and looking after the interests of but one company within the debt management marketplace.
About the Author:
Debt Relief Orders may not be for you but we have debt management options which will be right for your requirements
Aucun commentaire:
Enregistrer un commentaire