Creditors still hassling consumers who are going insolvent

According to a recent report many people that are in debt to the point where they have had to go through the insolvency process are still being harassed and hassled by their creditors. The research showed that around one third of those going through the insolvency process are still being hassled by their creditors. This is despite the fact that in many of these cases creditors are not supposed to be having direct contact with the borrower.

A study was carried out amongst those in debt who were going through bankruptcy, an Individual Voluntary Arrangement, or a Debt Relief Order, and 31 percent of the respondents said that they had continued to suffer harassment from the creditors despite the fact that they were going through this legal process.

Officials from the insolvency trade body R3 said that those that were most likely to be harassed by their creditors were borrowers that were going through the bankruptcy process, with around 44 percent of this group likely to experience creditor contact and hassle whilst going through the legal process.

It was also found by the research that around 44 percent of people that entered into a debt management plan to try and sort out their debts continued to be harassed by their creditors, despite the fact that all contact is supposed to go through the company that is managing the debt management plan.

The R3 group stated: “It is astounding that individuals continue to be hounded by creditors despite coming under the protection of statutory insolvency procedures. The decision to file for bankruptcy is a difficult one that, once taken, is meant to stop the endless contact from creditors. That such a large proportion of bankrupts are not afforded the peace of mind they are entitled to is of grave concern.”