Insolvency: Domestic Abuse
The question
To ask the Secretary of State for Business and Trade, what steps the Insolvency Service is taking to (a) identify and (b) respond to cases in which (i) statutory demands and (ii) bankruptcy petitions are used as an instrument of economic abuse or coercive control against a victim of domestic abuse.
Answered by Blair McDougall
Bankruptcy is generally considered a last resort due to its serious financial and legal consequences, but can also provide a route out of problem debt for vulnerable debtors. Creditors presenting a bankruptcy petition to the courts must meet strict requirements, including a hearing before a judge who will assess the fairness of making the order.
Persons At Risk of Violence orders provide a way to protect abuse survivors where disclosing an individual’s address could lead to violence.
A review of the Personal Insolvency regime is underway, with a forthcoming consultation to gather stakeholder views.
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