A third of Britons who have filed for personal insolvency or have taken out a debt management plan are still being harassed by their creditors, according to a new study.
Research by insolvency trade body R3 reveals that 31 per cent of people in statutory insolvency procedures are still being pursued by companies or individuals to whom they are in debt to.
The majority of those being harassed by creditors are people who have filed for bankruptcy (44 per cent), while a quarter are those in an Individual Voluntary Arrangement (IVA).
Commenting on the findings, Steven Law, president of R3, said the findings were of "grave concern".
"It is astounding that individuals continue to be hounded by creditors despite coming under the protection of statutory insolvency procedures," he 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."
The study also shows that 44 per cent of people who have taken out a Debt Management Plan (DMP), which is an informal insolvency procedure, continue to be hounded by their creditors .
R3 said nearly a third of people who were currently in the process of going bankrupt had previously been on a debt management plan .
"The range of debt solutions both regulated and unregulated is deeply confusing for an individual in potentially the most stressful period of their life," Law continued.
"They should be applauded for taking action to bring resolution to their finances and make a fresh start, not pressured by their creditors once they have acted to deal with their affairs."
He added that debtors should be given up to 28 days breathing space from creditors so that they can consider every option, and "enjoy a respite from creditor pressure".
Insolvent Debtors Still Hounded By Their Creditors
Fri, 21 May 2010
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