Wednesday 7th of October 2009
Using a debt management plan to deal with repaying what you owe could stave off the threat of bankruptcy.
In one case, Manchester City Council carried out insolvency proceedings against a resident over an unpaid bill of just over £1,000.
The man in question, known as Mr Joseph, said he did not even know he owed the bill and was not told about the bankruptcy.
Local government ombudsman Jerry White said: "I regard it as a fundamental flaw that the council should have been using this method of collection without a written policy for officers to refer to in individual cases."
Bankruptcy can lead to a debtor losing their home in order to pay back borrowings - something many people may want to avoid.
But a debt management plan could help to repay such a sum, providing it is unsecured debt such as credit card bills, without the need for such serious action.
October’s Credit Action report revealed someone in Britain is declared bankrupt or insolvent every 3.97 minutes - so people may wish to seek debt management plan advice immediately in order to avoid joining the statistics.
By Chris King
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