Consumer Bankruptcy / Overindebtedness
||EP In-Depth Analysis - The Impact on SMEs of the Proposal of Preventive Restructuring, Second Chance and Improvement Measures
This study was commissioned by the European Parliament's Policy Department for Citizens' Rights and Constitutional Affairs at the request of the JURI Committee. It looks at the effects the recent Commission proposal might have both on micro and small and medium-sized enterprise, thus reflecting the diversity of SMEs. It identifies and explains the issues at stake of... [more...]
||Parliament produces a 2 pager explaining the second Chance for Entrepreneurs
At a Glance - A SECOND CHANCE FOR ENTREPRENEURS - PE 583.141 - Committee on Legal Affairs There are still several Member States where a business cannot be restructured before it is insolvent. Important discrepancies have remained as to the duration of the discharge period. Such differences in Member States' legal frameworks mean continuing legal uncertainty. The proposal... [more...]
||News from the European Consumer Debt Net: End 2016 Conference, news members and new coordinator
In 2016 The coordination of ECDN was taken over by Bulgarian partner Centre Innovation and Development. Since April 1st, 2016 ECDN has a new coordination office. The task of coordinating the different activities of ECDN will Centre Innovation and Development be fulfilled by the (CID) at the University of Economics-Varna (UEV).The CID was established in 2013 and is led by... [more...]
||Paper looks at the Causes of Household Bankruptcy in Canada and the interaction of Income Shocks and Balance Sheets
The Causes of Household Bankruptcy: The Interaction of Income Shocks and Balance Sheets, Vyacheslav Mikhed and Barry Scholnick, Philadelphia Fed Working Papers July 2016 Abstract We examine how household balance sheets and income statements interact to affect bankruptcy decisions following an exogenous income shock. For identification, we exploit government payments in... [more...]
||EU Insolvency Conference on 12 July 2016 (Registration still open) and Consultation (open until 14.6.2016)
Convergence of insolvency frameworks within the EU In the context of the 2015 Capital Markets Union Action plan and Internal Market Strategy, the European Commission is in the process of preparing a legislative initiative addressing certain aspects of substantive insolvency laws. This initiative will follow up on the Commission Recommendation of 2014 on a new approach on... [more...]
||The new European Insolvency Regulation published in June 2015
Regulation on Insolvency Proceedings (Recast) was published on June 5, 2015. The Regulation (EU) 2015/848 of the European Parliament and of the Council , of 20 May 2015, on insolvency proceedings (recast), has been published OJ L 141. On 20 May 2015 the European Parliament approved the new European Insolvency Regulation (EIR) in the text adopted by the Council at first... [more...]
||Overindebtedness – Reports from Sweden quantify the cost to society of over-indebtedness and find that measures against it are not sufficient and that debt relief would be more...
Overindebtedness specialist and ECDN partner from Sweden Prof. Richard Ahlström shares two recent reports that he has worked on recently. The first one concerns the cost to society of over-indebtedness in Sweden. This report was published yesterday (16.6.2015) by the Swedish National Audit Office. In the first link below there is a summary in English. The Audit Office is... [more...]
||European Commission study on "Bankruptcy and second chance for honest bankrupt Entrepreneurs" has been published
The final report and summarised country reports are available here. Final report and Annex VI: summarised country reports A summary is copied below. Study on ''Bankruptcy and second chance for honest bankrupt Entrepreneurs'' Published on: 03/12/2014 by the Directorate-General for Enterprise and Industry The specific aims of this study are to look at: 1. the extent to... [more...]
||Over-indebtedness – The EU civil society draws up an opinion and calls for an Overindebtedness Observatory and a common working definition of over-indebtedness established at European level
In April 2014, the European Economic and Social Committee drew up an exploratory opinion on Consumer protection and appropriate treatment of over-indebtedness to prevent social exclusion. The links to the paper are available below. A short description of the EESC Calls and recommendations include the following: Calls for a common definition: The EESC is... [more...]
||Overindebtedness - European conference on European Overindebtedness to discuss the DG SANCO Study – Date 12.12.2014, registration opens in September.
Organised in Brussels by ECDN, EFIN and the ​EESC on December 12th 2014 is a long awaited conference to discuss Overindebtedness in Europe. The main piece of the event is the discussion of the soon to be published 2012-2013 Study on Overindebtedness by DG SANCO. All the key stakeholders are expected to attend. The conference programme is being elaborated and the main... [more...]
||1,270% APRC - the new UK usury rate ceiling?
In the UK consumers can still pay extortionate rates of interestwithout being able to blame the banks. So-called ‘payday loans’ in the UK are marketed as an alternative to more affordable overdraft credit. They are extended to people who struggle to make it to the end of the month and their next wages. This liquidity problem is exploited by the banks. But the banks at... [more...]
||OVERINDEBTEDNESS - Italian Scholar and partner of ECRC published a book in Italian.
Diana Cerini from the University of Milano Bicocca has published 521 pages about Overindebtedness and Consumer Bankruptcy: Between punishment and grace in Italian language with Giuffré Editore 2012. In this socio-legal study the author traces the history of modern concern with consumer overindebtedness, While she starts with the perception of overindebtedness the third... [more...]
||UK: Charter against irresponsible payday lenders
Church Action on Poverty have launched a charter with a call for tougher regulation and enforcement in relation to payday lenders. The charter is a reaction to the financial conduct authority's (FCA) proposals for regulation, that are not considered as reaching far enough by several cross-party MPs and “some of Britain’s biggest debt, consumer and anti-poverty... [more...]
||Paper: Accounting for Personal Overindebtedness: Debtors' Accounts in Applications for Debt Relief at the Swedish Enforcement Authority
Accounting for Personal Overindebtedness: Debtors' Accounts in Applications for Debt Relief at the Swedish Enforcement Authority Bengt Larsson and Bengt Jacobsson Abstract: This paper aims to describe and understand the accounts given in applications for debt relief/adjustment in relation to the 'question situation' that overindebted person stand before in their... [more...]
||IRELAND: ECRC partner FLAC is given an award for its work, held an information session on personal debt last month, and comments on limitations of the new law for insolvency...
Revising the code of conduct for banks on mortgage arrears: Central Bank Publishes Revised Code of Conduct on Mortgage Arrears http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankPublishesRevisedCodeofConductonMortgageArrears.aspx Past FLAC comment: The Central Bank is in the process of revising its current Code of Conduct on Mortgage Arrears - a very... [more...]
||Indebtedness in Ireland: Debt and Dying.... research into the burden of funerals on the Traveller community
Debt and Dying Understanding and addressing the impact of funeral costs for Travellers in Ireland An exploratory analysis for National Traveller MABS The Financial Burden Of Funerals within the Traveller Community In 2010, Dr Stuart Stamp, Maura Boyle and Ciara Murray carried out exploratory research on behalf of National Traveller MABS into the financial burden of... [more...]
||World Bank personal bankruptcy report: Insolvency expert Jason Kilborn and others from the ECRC have been involved in setting international standards in the World Bank Report on the...
The Report and two posts by Jason Kilborn on the Credit Slips blog are featured below. Report on the Treatment of the Insolvency of Natural Persons (2013, the World Bank: Insolvency and Creditor/Debtor Regimes Task Force: Working Group on the Treatment of the Insolvency of Natural Persons; Committee Chair: Jason J. Kilborn; Members: Charles D. Booth, Johanna Niemi, Iain... [more...]
||Regulation to prevent overindebtedness: The CGAP (World Bank Financial Inclusion branch) has published a paper on the need to regulate and prevent the consequences of debt stress and...
This Focus Note, from the author from South Africa who has been involved in discussions with the ECRC over past years, aims to offer practical guidance to regulators and policy makers who face challenges of private credit growth. It argues that it is preferable to implement appropriate monitoring mechanisms and regulatory interventions at an early stage in credit market... [more...]
||Insolvency: EU Study on debt solutions published and FSUG position paper on the Study
Here attached and as links are the Study on debt solutions produced by London Economics entitled “Study on means to protect consumers in financial difficulty: personal bankruptcy, datio in solutum of mortgages, and restrictions on debt collection abusive practices” and the FSUG Position Paper on it. March 2013: FSUG position paper on the debt solutions research study... [more...]
||News from Ireland: Personal Insolvency Act 2012, central bank announcement of additional Measures on Mortgage Arrears, inspection of licensed moneylenders, report on Retail Intermediary...
See some recent consumer related news from Ireland including the financial supervisor’s new Consumer Protection strategy based on the 5 “C”s framework: CONSUMER alongside CONFIDENCE, COMPLIANCE, CHALLENGE and CULTURE. Personal Insolvency Act 2012 See the following link: http://www.oireachtas.ie/documents/bills28/acts/2012/a4412.pdf Civil Law The Personal Insolvency Act... [more...]
||Overindebtedness - Study of the situation for private households in Italy (in English) including further central bank studies on wealth etc.. (in Italian)
Household over-indebtedness: definition and measurement with Italian data Bank of Italy Occasional Paper Number 149 – February 2013 by Giovanni D'Alessio and Stefano Iezzi Abstract The last decade has seen significant increases in consumer indebtedness in western countries, causing concern about its economic and social impact. In particular, over-indebtedness is... [more...]
||Overindebtedness - First personal bankruptcy law in Luxembourg
The news is posted by ECRC partner Christian Schumacher from the Ligue Medico-Sociale, he is also a member of ECDN and the new law for personal insolvency and debt relief is partly the result of the intense exchanges within this EU network, which can be proud of its achievement in promoting the harmonisation of laws in this area among those Member States that still do not... [more...]
||EU Study on the over-indebtedness of European households – preliminary findings presented
The preliminary findings of the “The over-indebtedness of European households: updated mapping of the situation, nature and causes, effects and initiatives for alleviating its impact” study was presented at stakeholder seminar on January 24th in Brussels. DG Sanco has announced to publish the final version in April 2013. The summary document for the stakeholder workshop... [more...]
||Overindebtedness - An increasing focus of consumer policy.
Journal of Consumer Policy Volume 35, Issue 4, December 2012 Special Issue: The Regulation of Over-indebtedness of Consumers in Europe http://link.springer.com/journal/10603/35/4/page/1 [more...]
||CONFERENCE: FLAC held an expert conference on personal insolvency in the EU and discussed various aspects of Ireland's forthcoming legislation
ECRC Irish partner FLAC (Free Legal Advice Centres) has organised a conference on personal insolvency run in Dublin on April 19th. Discussions and presentations from international speakers centered around private bankrupcy and the Irish draft scheme for a forthcoming Personal Insolvency Bill which was published in Ireland at the end of January and likely to be published at... [more...]
||Conference: Italian and Spanish academics and regulators get together to discuss overindebtedness and insolvency of households with stakeholders (Bari, 19-21 July 2012)
ECRC will be represented at a conference being organised at the University of Bari in Italy on 19-21 July 2012. The conference will bring together legal scholars, jurists, lawyers, policymakers and practitioners from public and private institutions and organisations from all over Europe and we encourage ECRC partners to join. Reputable experts in the field will be present... [more...]
||EU HEARING: Universal access to a basic payment account
The Committee on the Internal Market and Consumer Protection (IMCO), European Parliament has held an additional hearing on the basic bank account following hearings by both the IMCO and ECON hearings from last year. Prof. Reifner from ECRC partner iff contributed to the debate on EU basic banking legislation with a presentation and paper on the role of overindebtedness... [more...]
||Global rules for private bancruptcy? - World Bank leads Working Group Meeting on the Treatment of Insolvency of Natural Persons this month
A Draft Report on the Treatment of Insolvency of Natural Persons is being discussed and will serve as the basis for the discussions at the meeting of the expert group next week. The meeting will take place in the Preston Auditorium at the World Bank Headquarters located at 1818 H Street, N.W., Washington, DC 22043. The Thursday, Nov 17, morning session is also open to... [more...]
||Just in time - Greek Citizens got some protection - What happens to Italy and Spain?
ECRC has been involved in the Greek consumer bankruptcy scheme that has been passed 2011 and is now open for overindebted Greek citizens. This happened last minute after the situation for Greek citizens deteriorated so significantly. Our Greek member gives us the first impression how well international cooperation not only of banks but also of stakeholder groups can word.... [more...]
||New report: Irish lessons from EU better practice “Understanding and Combating Financial Exclusion and Overindebtedness in Ireland”.
ECRC supporter Dr Georges Gloukoviezoff, is an excellent economist and specialist researcher in issues of financial exclusion. He continues to make a large contribution to the debate on responsible credit with a recent publication from Dublin’s Trinity College Policy Institute for the Irish Government. Book outline: “Unlike the UK, France and Belgium, Ireland has not... [more...]
||OVERINDEBTEDNESS – ECRC’s German member iff has published its 2011 report on Overindebtedness in Germany
The institute for financial services (iff) with support from the Nuremberg based charitable foundation “Deutschland im Plus” has published its iff Over-indebtedness report 2011 in Germany this week. Key findings of the 2011 edition are: - Rise in personal insolvencies in 2010, turn in trend for 2011 - “Irresponsible consumption” at its lowest level since 2005 -... [more...]
||UK indebtedness – The UK charity Consumer Credit Counselling Service publishes some UK personal debt statistics
The UK debt charity Consumer Credit Counselling Service (CCCS) is analysing the phenomenon of indebtedness and over-indebtedness using data from those persons subject to the counselling. Such empirically founded research informs policy makers about the true nature of the problems being faced by those experiencing problematic debt. Similar research is taking place elsewhere... [more...]
||Insufficient and biased Data on Consumer Debt in Europe - the Example of Germany.
A cross national comparision of data on consumer indebtedness is less easy than one can assume. The European Consumer Credit Research Institute (ECRI) a research institution between lobbying and research financed by major banks provides the only annual statistics on houshehold borrowing and consumer credit (see http://www.ecri.eu/new/node/165). Since its basis are... [more...]
||Ireland: Overindebtedness and Supervisors's new Consumer Advisory Group
Central Bank of Ireland announces appointments to Consumer Advisory Group http://www.financialregulator.ie/press-area/press-releases/pages/centralbankofirelandannouncesappointmentsto.aspx Financial Exclusion and Over-indebtedness in Ireland Publication http://www.esri.ie/publications/search_for_a_publication/search_results/view/index.xml?id=3239 Conference... [more...]
||IRELAND: Milestone reached as a Personal Insolvency Bill is drafted by the Department of Justice and Equality
“Is there a light at the end of the tunnel?” asks an ECRC partner from Ireland regarding major law reform. See the links below: Personal Insolvency Bill On 24 January, 2012, the Government approved the Minister for Justice and Equality proposals for the drafting of the Personal Insolvency Bill. The drafting of the Bill, will be arranged on a priority basis, so that it... [more...]
||Brazil - Handbook on over-indebtedness launched and draft bill for revision of the Brazilian Consumer Protection Code planned, focusing on the consumer credit markets and over-indebtedness.
Below is a translation of Brasilcon’s news update, our Brazilian partner of the Global Coalition for Responsible Credit. Dear friend and associate of Brasilcon, We inform you with satisfaction on the launch of the Handbook about overindebtedness, the result of a partnership between the Department of Consumer Protection and Defense (DPDC) and experts: Claudia Lima Marques,... [more...]
||European Commission - Improving the Enforcement of Judgments and facilitating cross-border debt recovery
The European Commission is still examining different options subject to the on-going Impact Assessment study and could come forward with concrete proposals in this field in the first half of 2011. The most preferred option appears to be a new self-standing European procedure: a European Bank Attachment Order. Commissioner Reding in charge of the new EU Justice portfolio is... [more...]
||Conference on the assessment and treatment of overindebtedness - Namur (Belgium), 30th Sept-1st Oct 2010 - Programme and registration
"Regional and local treatment, prevention and assessment of over-indebtedness" Namur (Belgium), 30th Sept - 1st Oct 2010 Sir, Madam, Within the framework of the Belgian Presidency of the Council of the European Union, the Observatory of Credit and Indebtedness is holding a symposium. This will be about actions implemented by Regions and territorial communities concerning... [more...]
||New paper on overindebtedness in the EU and legal suggestions that are being ignored
Expert Recommendations and the Evolution of European Best Practices for the Treatment of Overindebtedness, 1984-2010 Jason J. Kilborn The John Marshall Law School August 21, 2010 Abstract: A series of European experts have weighed in over the past twenty years on the proper way forward for preventing and treating consumer overindebtedness. This paper applies these expert... [more...]
||Overindebtedness – Paper on overindebtedness and behavioural limitations may help understand the incapacity faced by some borrowers to take corrective steps despite knowing the dangers...
Risk of Overindebtedness and Behavioural Factors Luisa Anderloni University of Milan – DEAS, Daniela Vandone University of Milan, August 4, 2010 RISK TOLERANCE IN FINANCIAL DECISION MAKING, C. Lucarelli, G. Brighetti, eds., Palgrave Macmillan, 2010 Abstract: The aim of this paper is to analyse the link between behaviour and overindebtedness and to shed light on the... [more...]
||DEBT TRAP - A UK report on overindebted low income households shows that the vorrowers are using credit to meet basic needs.
Joseph Rowntree Foundation reports low income households using credit to meet basic needs ‘Credit and Debt in Low Income Families’, which examines credit use and debt levels amongst low income families, shows that complex debt arrangements and a lack of sustainable employment typically leads to poor debt management and ‘debt traps’. The report finds that debt is more... [more...]
||From Welfare State to Welfare Society - The Greek answer to the financial crisis should be copied elsewhere.
Greece has introduced a new consumer bankruptcy code modelled after the German insolvency procedure but with a significant shorter good will period of 4 years (6 in Germany). Its outstanding innovation lies in the development of a network of debt advice offices in Greece. In its inauguration conference the Greek socialist ministry of economics had invited a representative... [more...]
||IRELAND - Report from the Joint Committee on Social and Family Affairs on 'High Levels of Indebtedness in Irish Society'
Joint Committee on Social & Family Affairs (2nd Report on High levels of Indebtedness in Irish Society, February 2010) Report from the Joint Committee on Social and Family Affairs on 'High Levels of Indebtedness in Irish Society' http://www.oireachtas.ie/documents/Committees30thDail/J-SocialFamilyAffairs/Reports_2009/20100216.doc FLAC Press Release... [more...]
||UK Report published: “Helping over-indebted consumers”
PRESS RELEASE: Business, Innovation and Skills, 4 February 2010 Full report - The Department for Business, Innovation and Skills: Helping over-indebted consumers The Department for Business, Innovation and Skills’ (BIS’s) free face-to-face advice for people struggling with debt has helped more people than planned, at slightly less than the planned cost per... [more...]
||A Report on Poverty, Debt and Legal Aid in Japan by ECRC partner Saya Oyama (Associate Professor, Kinjo Gakuin University, Japan)
2009 International Forum on Legal Aid Taipei Taiwan Panel Discussion III Day 2 [14:00-15:10, 1/11/09] Poverty, Debt and Legal Aid in Japan Saya Oyama (Associate Professor, Kinjo Gakuin University Japan) ________________________________________________________________________________ Preface As an introduction to the issues of “Poverty, Debt, and Legal Aid in Japan”, I... [more...]
||Draft law on over-indebtedness – A legislative proposal aimed at introducing a private bankruptcy scheme in Luxemburg is tainted with shortcomings when compared to the laws in...
Here attached is the critical assessment by ECRC partner ULC (Union Luxembourgeoise des Consommateurs) of the Luxemburg bankruptcy law proposal (in French). Despite welcoming the legal initiative allowing for private rehabilitation and a ‘second chance’, l’ULC is not content with : the slow implementation of total debt discharge (which in some cases could involve 20 years... [more...]
||EU SEMINAR ON OVER-INDEBTEDNESS – ECRC partners inform the Commission at an event organised by DG Employment in Brussels on 20 November.
The event, organised by Applica, one of the coordinators of the European Observatory on the Social Situation and Demography (an Observatory that consists of four multi-disciplinary networks of independent experts established for the European Commission in 2005, with the aim to analyse social and demographic trends and to assist the Commission in its duty to report on the... [more...]
||Over-indebtedness - European Consumer Debt Network calls decision-makers to take over-indebtedness seriously
31st of October: ecdn calls decision makers to take urgent action The European Consumer Debt Network expects numbers of over-indebted people to grow and sends a letter to European decision makers to call for urgent action. (Press Release) At least 20 million people are over-indebted in the EU. "With the increasing unemployment rates the number of people with debt problems... [more...]
||CONSUMER BANKRUPTCY – New report on regimes in the US and Europe and link to new book “Consumer Credit, Debt and Bankruptcy".
Consumer Bankruptcy Regimes in the US and Europe - Further effects and implications of the crisis (CEPS Working Document No. 318/July 2009 by Maria Gerhardt) ABSTRACT Consumer insolvency is a topic that has gained much prominence in the context of the financial crisis on both sides of the Atlantic. In countries such as the US and the UK, the number of bankruptcy filings... [more...]
||NEW BOOK – A new publication entitled “Consumer Credit, Debt and Bankruptcy” provides details on comparative and international perspectives
The discount order form for this book is on the second page of the flyer attached below. CONSUMER CREDIT, DEBT AND BANKRUPTCY - COMPARATIVE AND INTERNATIONAL PERSPECTIVES Edited by Johanna Niemi, Iain Ramsay and William C Whitford After a long period of prosperity and steady economic growth, the world's leading economies are now in crisis, and although there will be... [more...]