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Debt as a Social Policy Issue
Diary Of A Debt Deputy
Debt Team "Not Resting - Developing Strategy"
(with apologies to Samuel Pepys, Mrs. Dale, Adrian Mole & Bridget Jones)

February 2003:
Had a rash moment in the office today. Poor old BC’s deluged with debt cases and needs some new assistants. Would I like to help? Well, as I can usually add 2+2 and manage to keep the old bank account in the black, I stuck my head above the parapet and said I’d give it a go.
March: Got sworn in as a deputy (no shiny badge though) at our first team meeting. Heavens, what a lot of customers! Need to get to grips with PG7 next, new forms to design, arrangements to make for the new Debt Clinic. Busy, busy, busy.
April: Open for business every Tuesday afternoon now. Knees knocking — we got our first customers. Two of mine are nice young men — well, there’s got to be some perks to this job!
May: BC’s been off for two weeks hols! I swear every one of his clients called whilst he was away.
June: Been going 3 months already, where does the time go? Heck! Not giving up now just as I’ve mastered PG7! Over 30 new clients since we started so there’s plenty to do.
September:Got well and truly suckered by BC the other day. ‘Could I see this new client at short notice? Nothing too difficult, just some credit card debts, but the client is expecting a windfall soon which will sort it all out’. Well, if I knew then what I know now! Ne’er a week goes by but she’s either on the ‘phone or in the office. Still she’s very grateful and we have made progress.
October/November/December: Did some adding up. In the previous 3 months we’d taken on over 30 more new clients whose debts came to more than £400,000. Got a bit quieter towards Christmas.
January/February 2004: Back after 2 weeks hols. The Christmas bills have bounced onto the mat so, as expected, we’ve had a steady stream of new customers. We managed a complete review of all our clients though and actually closed several case files. Still leaves us with over 70 active customers though.
March: Two new gentlemen deputies have been sworn in (still no shiny badges). One to assist with all the paperwork and the other to help out on the front line. Hard to believe it’s a year since I signed up. What are my thoughts? Well... .the problem may be the same i.e. not enough money, but the people and their stories are so, so varied. From irresponsible spending to cases of illness and real hardship. It’s pleasing to be able to take some of the pressure off and bring a bit of a smile to some of their faces. Most are really grateful. I got a ‘thank you’ card the other day. From one of my nice young men — of course! Jean

Going Bust? Will the changes to insolvency legislation lead to more people choosing bankruptcy?
On 1.4.04 substantial changes to personal insolvency came into force. The Governments aim was to encourage enterprise and responsible risk taking. The two main changes are a reduction in the length of time before discharge from bankruptcy from 3 years to a year for most bankrupts, and the introduction of bankruptcy restriction orders that are intended to ensure protection against unscrupulous bankrupts by extending the period before discharge from bankruptcy for up to 15 years.
Many credit lenders are sceptical that the reforms will have these effects. They point out that the majority of those going bankrupt are individuals in debt, rather than small business failures. They are concerned that more people in debt will see bankruptcy as an easy option, and that the reduced discharge period will encourage consumers to borrow irresponsibly. Lenders warn this could affect everyone’s access to credit.
Cases coming to Bureaux lead Citizens Advice to question their analysis. Firstly, bankruptcy is already on the increase. Over the past 4 years there has been a 30% increase in the number of individuals petitioning for bankruptcy—a steep 15 % increase in 2003. We consider that the increase is likely to be due to the current economic conditions. Low rates of unemployment, low interest rates and soaring house prices have resulted in a substantial increase in mortgage and consumer credit lending. Secondly the reforms do not make bankruptcy easier. It is not an easy option. People in multiple debt need to think carefully about the consequences of bankruptcy on their lives before submitting a petition. Despite the changes bankrupts will still lose control over their financial affairs , have existing bank accounts closed and face the sale of their assets including their home and possibly their car. Certainly the number of petitioners will not be swelled by those who are to poor to afford the deposit fee—which increased from £250 to £310 and needs to be paid in cash!