Leading Insolvency Provider, IVA-Advice.co says recent proposals by R3 to give struggling individuals breathing space could prevent people from falling into Bankruptcy.
According to a news release from R3, an insolvency trade body, individuals who struggle with repaying their debts could benefit with a 28-day break, which it calls "Breathing Space" prior to creditors taking action. The purpose of the time is to allow the debtor adequate time to seek advice from financial experts.
According to R3, such individuals are already under pressure from creditors and likely to be under serious stress. In the process of finding solutions to an immediate problem, they sign up for guarantor loans or other inappropriate funding solutions for their debt, or agreeing to other types of debt solutions that they could have avoided with more time to consult with credit professionals, friends or family.