Diffusing the Debt 'Time Bomb'

Abstract

Comments on the Department of Constitutional Affairs' publication of the consultation paper, A Choice of Paths: Better Options to Manage Over-Indebtedness and Multiple Debt. Assesses the proposals to reform the law relating to individual debt, including the introduction of a debt relief scheme and an enforcement restriction order, and reform of the scheme for administration orders. Considers whether the introduction of obligatory debt counselling could provide an answer to the growing problem of over-indebtedness relief and the possible role and benefits of a Debtor Advice Bureau funded by the credit industry to operate obligatory counselling.

Keywords: department for constitutional affairs, debt, debtor, creditor, reform, law, debt counselling, debtor advice

JEL Classification: K00