WADA responds to Insolvency Review: call for evidence

WADA has submitted a joint response with Greater Manchester Money Advice Group and the Centre for Responsible Credit (‘CfRC’) to the Insolvency Service’s Call for Evidence regarding the Personal Insolvency Framework. The submission calls for a fundamental overhaul of the framework, including the abolition of IVAs, the protection of debtor’s homes, and the removal of fees for bankruptcy and Debt Relief Orders.

Commenting on the submission, CfRC Chief Executive, Damon Gibbons, said:

“The current framework is not delivering for debtors or wider society. It needs a complete overhaul. With the cost-of-living crisis deepening, and recession ahead, Government should act swiftly to commit Parliamentary time to making fundamental changes. These include abolishing IVAs, which are high cost and have a high failure rate. We need a single procedure, which is focused on protecting people’s homes and which provides for a ‘fresh start’ for people who clearly have limited incomes and assets.

In advance of primary legislation, abolishing the maximum debt limit of £30,000 for Debt Relief Orders, further increasing the allowable monthly surplus income amount from £75, and increasing the car asset value to £5,000, whilst abolishing the £90 fee would be a good start.”

The full submission can be downloaded here, and WADA is encouraging supporters to add their signature in support here.