Enforcement Restriction Orders for 2010, will it affect the IVA & Debt Management

The Press Association have reported that the Government plans to introduce an initiative called the Enforcement Restriction Order. This is designed to assist people who have been subjected to a change in personal circumstances who have personal debts outstanding that can't be immediately repaid.

In essence it is a facility for consumers to approach a county court and ask for an order to be placed which allows them a PAYMENT HOLIDAY suspending due payments for up to one year. Interest would still accrue on accounts but late payment charges would be waived during the payment holiday.

Courts would be expected to make the Enforcement Restriction Order difficult to obtain if the consumer is not struggling with a catalogue of low value debts. Mortgages, Student Loans & Child Maintenance would be excluded from any Enforcement Restriction Order