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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Changes to Irish debt law recommended

30/09/2009

The Law Reform Commission has recommended changes to the way some debt cases are handled in Ireland.

According to RTÉ (Radio Telefís Éireann - Radio [and] Television of Ireland), around 200 people are currently sent to prison over unpaid debts every year - but the Commission has stated that there should be a clear distinction between people who can`t pay and people who won`t pay.

Specifically, it recommends that people who genuinely can`t afford to repay their debts should not be sent to prison.

Over the last 15 years, the consultation paper points out, the availability of credit has grown dramatically - and so have the levels of indebtedness. As recently as 1995, the ratio of household debt to disposable income was 48%; in 2009, the ratio stands at 176%.

`Whilst most consumers are able to repay loans,` www.rte.ie states, `over-indebtedness has become a major problem for some, particularly since the economic downturn.`

Furthermore, at the moment `it takes 12 years to discharge a declaration of bankruptcy`, and the consultation paper recommends the introduction of a non-court-based debt settlement scheme, so honest debtors can `earn an earlier discharge`.

In the UK, the bankruptcy rules are very different. As the Insolvency Service website puts it: `You will be automatically freed from bankruptcy (known as "discharged") after a maximum of 12 months. This period may be shorter if the official receiver concludes his enquiries into your affairs and files a notice in court.`

In the UK, the court may require the person who`s been declared bankrupt to make payments towards their bankruptcy debts for a maximum of three years.

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according