Homeowners who have been unable to make repayments on credit debts may soon be offered greater protection in the courts, as the government has issued a consultation paper regarding this matter.
Justice minister Bridget Prentice noted it is essential to recognise the fact that the number of people in debt to creditors will rise because of the economic crisis.
“This could result in more people losing their homes because of relatively low levels of debt which they are unable to pay,” she said.
The current system allows a charging order to be placed on the homes of those who are not able to meet repayments on unsecured debts and this can be followed by an order for sale.
Meanwhile, moneysupermarket.com recently called for more information to be offered to those in credit card debt, with the potential consequences of just paying off minimum amounts each month made clearer to customers.
By Sarah Adie