Money Advice Liaison Group (MALG) has joined other debt sector stakeholders in backing Money Wellness’ call for urgent reform to the way abuse survivors are protected when entering personal insolvency.
For many people in severe financial difficulty, a Debt Relief Order (DRO) or Individual Voluntary Arrangement (IVA) is a vital route back to stability. But taking this step currently means their name and address are published on the public Insolvency Register; a requirement that can place survivors of domestic abuse, stalking or coercive control at significant risk.
Although individuals can apply for a Person at Risk of Violence (PARV) order to have their details withheld, Money Wellness says that the process is far from straightforward. Survivors must disclose traumatic experiences to the court, often reliving events they have worked hard to recover from. The process can also introduce delays that prevent people from accessing the debt solutions they urgently need.
Last year’s removal of the £318 PARV application fee was welcomed, but sector organisations agree it does not go far enough. Money Wellness’ next ask is to make the Insolvency Register private, with access restricted only to those with a legitimate interest.
The Insolvency Service is currently reviewing the Personal Insolvency Regime, and potential changes to the public register form part of that work. However, with the review likely to take time, organisations fear that survivors will continue to face avoidable barriers and risks in the meantime.
To address this, Money Wellness has today issued an open letter to the Department for Business and Trade, urging them to review the Insolvency Register separately and accelerate reform to the PARV process.
The letter, signed by a wide range of organisations across the debt, advice, financial inclusion and vulnerability sectors, highlights the urgent need for a safer, trauma‑aware system that does not force survivors to choose between physical safety and financial recovery. MALG joins other signatories including several MPs, Christians Against Poverty, Debt Advice Foundation, Helen Pettifer Training, Hourglass, Lowell, National Zakat Foundation, Nationwide Building Society, PayPlan, Refuge, Surviving Economic Abuse, The Salvation Army and Trafford Domestic Abuse Services.
MALG Members will be updated on any response to the letter.