Common sense seems to work in insolvency talks
Despite initial apprehension that financial institutions would force families out of their homes and on to the side of the road in pursuit of unpaid mortgage loans, it is apparent from the first and admittedly small batch of cases that these fears have not materialised.
A sample of 20 proposed settlements negotiated under the personal insolvency regime has shown that a minority, five, handed back the keys to their properties because of over-whelming debt. The majority managed to stay on in their homes by arriving at agreement with their lenders.
In some cases substantial amounts of money were written-off by the financial institutions, following negotiations through the Personal Insolvency Service Practitioner (PIP) provided certain agreed targets were met. Others had credit card and credit union loans written-off.