Charity wants 'outdated' law changed to help more people struggling with debt

The Salvation Army wants an overhaul to the current Insolvency Legislation

A charity is calling for more support for people on the Isle of Man who can't afford to pay their debts.

The Salvation Army says the current Insolvency Legislation, which is under review by government, is 'outdated'.

It says it has 50 clients needing its help at the moment, which is becoming 'unsustainable'.

Debbie White is from the charity and says they want it to be an election issue ahead of September's General Election:

In its current form, the policy looks at coroners' powers, company legislation and thereafter personal insolvency. 

The charity wants a review of the enforcement approaches, the law to be replaced with a modern legal framework that gives people with unmanageable debt options to resolve them and to progress phase three of the policy as a priority. 

This comes after the charity’s Debt Advice Service, which supports some of the most vulnerable members of the community, saw its active case load exceed over £2M of debt at the start of the year.

"Through our debt advice service, we know that finance is one of the biggest factors that impact people’s lives and debt can be a cause or consequence of poor mental health. 

"We also know that there is currently no modern, accessible framework to resolve unmanageable personal debt and this must now change."

Josh Adcock, is a policy analyst for The Salvation Army: "The decisions governments make, or choose not to make, have real consequences for people facing hardship. 

"Evidence from our Debt Advice Service shows that when essential costs exceed income, no amount of budgeting can bridge the gap. 

"Without the right solutions, people can become trapped in debt and pushed into destitution. 

"Personal insolvency laws should give people a fair way to resolve unmanageable debt, rebuild their lives and regain dignity, choice and agency, while giving creditors a clear legal framework. 

"On the Isle of Man, reform is urgently needed because rising debt and outdated laws are leaving people with too few routes out."

Manx Radio has approached government for a response.