Reimagining insolvency: A blueprint for personal insolvency in England and Wales

Reimagining insolvency: A blueprint for personal insolvency in England and Wales 517 KB

Personal insolvency is the legal framework for dealing with debts that can’t realistically be repaid. It includes remedies such as bankruptcy, debt relief orders and Individual Voluntary Arrangements. 

The current insolvency framework is outdated, fragmented and difficult for consumers to navigate. The Insolvency Service has been carrying out a review of the framework over the past few years, and recently indicated that it intends to explore options for significant structural reform in the next phase of its work. 

This joint report from Citizens Advice and the Money Advice Trust sets out a vision of what a reformed insolvency system could look like, including a set of principles that should underpin an improved system and a blueprint for a redesigned regime. Key features include:

• A single point of entry into personal insolvency, accessed via a regulated advice provider.

• Repayment and write-off pathways depending on individual assessment

• Flexibility to accommodate changes in individual circumstances while insolvent

Supporting financial rehabilitation by helping people rebuild stability and reduce the risk of future problem debt.