Debtors get help with protection from creditors
People with no prospect of repaying their debts are to receive more help, Enterprise Minister Arlene Foster has said.
The Debt Relief Bill will protect debtors from action by their creditors for a year, at the end of which their liability to pay the debts will be cancelled.
The legislation is intended to help those in moderate levels of debt but with no assets like property. The Citizens Advice Bureau (CAB) is dealing with a 21% increase in the number of clients seeking advice.
Ms Foster said: “Cancellation of his or her debts will give the debtor hope. It will give him the chance to start a new chapter in his life free from the stigma of being burdened by debts, it will achieve his financial rehabilitation.”
The scheme is intended to be a streamlined affair for those with straightforward debt and little in the way of assets.
It will not be open to struggling homeowners.