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Insolvency creditors 'still subject to harrassment'

Published on 19 May 2010 under category: legal

Filing for bankruptcy does not guarantee 'peace of mind', according to a new report.

R3, the insolvency trade body, has found that a third of people who have called in lawyers to begin formal insolvency procedures can still find themselves harassed by creditors.

On the findings, its president, Steven Law, said: "The decision to file for bankruptcy is a difficult one that, once taken, is meant to stop the endless contact from creditors.

"That such a large proportion of bankrupts are not afforded the peace of mind they are entitled to is of grave concern."

He added that there needed to be a debate about different methods of debt management as many people filed for bankruptcy after failing to complete a debt management plan (DMP).

"The fact that the same percentage of bankrupts and people in a DMP are hassled by their creditors suggests that no matter what procedure a person is in, they can still be contacted.

"Either creditors need to ensure their records are up to date or they need to play by the rules."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.