Innovative debt advice scheme 'transforming the lives' of Norwich council tenants » Bill payments » 24dash.com

A debt advice scheme in Norwich is transforming the lives of people struggling to pay their rent and in danger of losing their council homes, by negotiating repayment plans suitable to them and their landlords.

The scheme - run by the Norwich County Court, Norwich City Council and Norfolk Community Law Service (NCLS) - also helps clients avoid getting deeper into debt by incurring court costs and the stigma of a court appearance.

Before being summoned to a hearing, people with council rent arrears are invited by the court to attend a meeting with an advisor from NCLS.

During the meeting, contact is made with a council rent officer to take part in negotiating a repayment scheme, and also with a housing benefits officer to see if the client is missing out on any entitled benefits.

The scheme has been successful, with 70 per cent of the people invited for meetings attending and majority managing to renegotiate their repayment.

Justice Minister Bridget Prentice said: "Our message today is simple: don't bury your head in the sand. The right help at the right time can make the difference between losing your home and keeping it.

"Being in debt can bring misery to a lot of people, but losing your home on top would be harder still. That is why I am so pleased to see the Norwich scheme stops people from sliding deeper into debt.

"The scheme reaches out to people who may simply have felt overwhelmed by the rent arrears, enabling them to talk to the rent office about any problems they are having with the help of an independent mediator.

"The Norwich scheme is exactly is an example of people getting together to solve a problem without going to court."

Judi Lincoln, Housing Repossession Co-ordinator with Norfolk Community Law Service said: "Some people are genuinely fearful of dealing with their affairs and sometimes lack the life skills and confidence to do so.

"This scheme enables us to help many, particularly vulnerable people avoid losing their homes and all the trauma that entails, particularly when there are children involved.

"The scheme also helps people avoid increasing their debt through having to pay court fees. Many of our clients have said that without our support they would have lost their property."

Councillor Brenda Arthur, Norwich City Council's portfolio holder for housing, said: "We are delighted that this scheme has been so successful and we are looking at how we can build on that success in the future. Our aim is to work effectively, in partnership with our tenants to achieve positive outcomes."

The scheme is one of a range of initiatives available in local courts to help people manage their debts.  Others include:

• Advice desks at County courts where people at risk of being evicted from their home as a result of possession proceedings can get advice and support.
• Posters in County courts, giving people details of free advice providers to advise and assist them with their debt problems.

The Government also proposes that people in debt should be given information by creditors on how to contact them to discuss problems, and details of independent free advice providers in a letter before taking legal action, helping them to avoid court.

Plans to give judges powers to issue Enforcement Relief Orders to give people who have temporary financial difficulties a short break from repaying a debt where there is clear evidence that their circumstances will improve within a short period are also being considered, following consultation in June.