New Debt Solution To Bridge The Gap?

There is currently a consultation being undertaken for a new debt solution which will focus on repayment of debt rather than debt relief- this is to try and bridge the current gap that exists. There are similar legal protections involved as there is with the Breathing Space protocols.

The interesting point for us is that this solution should improve the return for creditors. 

The Consultation closed on 5th August so we await this space..

Debtor seeks debt advice and applies for a SDRP o Debt advice provider considers eligibility. o Where necessary, creditors amend debt values and notify debt advice provider of additional debts o Provisional plan is devised and submitted by the debt advice provider. Plan protections start. Creditors have the opportunity to object to the provisional plan o Where necessary, the Insolvency Service conducts fair and reasonable assessment o Plan starts and debtor makes payments as agreed o Debt advice provider conducts annual and in-year reviews as required, making use of plan flexibilities where appropriate o Where necessary, creditors are able to make further objections, including to apply to a debt advice provider or the court for a review o Plan is completed and all debts extinguished, or plan ends early through revocation

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1074600/SDRP_consultation_document_final_version.pdf