Friday, 14 May 2010

District Judges comment on Debt Management Scheme Consultation

The Association of Her Majesty's District Judges has set out its response to the Ministry of Justice consultation "Debt Management Schemes - delivering effective and balanced solutions for debtors and creditors". The learned judges make a number of key observations. See here. The learned judges make two general observations before going on to address the specific questions. In there general observation section they note:
"Firstly, we look forward to the further implementation of the Tribunal Courts

and Enforcement Act 2007. The success of the further implementation of its

provisions will depend to an extent upon the availability of a modernised and

adequate I T system. The management of “debt claims” will in our view

become more efficient when the provisions of the Act are fully implemented.

Secondly, the District Bench would welcome clarification of the entitlement of

a judgment creditor to apply for a charging order (usually in respect of the

debtor’s beneficial interest in the family home) in circumstances where there

is an instalment order that is being complied with. Court hearings in respect

of instalment orders, where there is (a) an asset that could provide security

and (b) a Debt Management Plan in place, take up a significant amount of

court and judge time that would not be required if the legal position were to be

clearly and unequivocally defined. We appreciate that S.93 Tribunal Courts

and Enforcement Act will deal with this point, but in the meantime there

remains the conflicting interpretations of S86(1) County Courts Act 1986."

Picture Credit: http://image.guardian.co.uk/sys-images/Arts/Arts_/site_furniture/2007/05/01/courtroomdress460.jpg

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