If you can’t afford to repay a debt, you can apply for an insolvency solution. But you need to provide personal details, such as an address, which are then listed in the public register for anyone to search.
However, domestic abuse survivors and vulnerable individuals can apply for anonymity – though this comes at a charge.
To have your details removed, you need to apply to the court for a ‘Person at Risk of Violence’ (PARV) order. Until 1 May, the fee was £280 before it was hiked to £308, though in some cases, the fee can be waived if applicants meet certain income-related criteria.
According to Money Wellness, which provides free debt help on behalf of the Money and Pensions Service, this price hike leaves individuals in a “dangerous situation”.
In one case seen by the organisation, person A who had fled a violent relationship was advised to apply for a PARV before completing an application for a debt relief order (DRO).
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But, a week later, they called back to advise they wanted to continue with the application for a DRO as “sorting out their finances was a priority” and needed to be done immediately.
Money Wellness said they risked their details being found by their aggressor, as there was no reasonable way for them to raise the cash to cover the cost.
In another instance, person B was removed from their former property and rehoused due to concerns they would be murdered. Their application for a DRO has not yet been submitted and has been put on hold so they can apply for PARV. However, Money Wellness said their financial situation will not improve until they have raised £308 for the PARV fee.
‘Forcing domestic abuse survivors to jump through hoops’
Sebrina McCullough, director of external relations at Money Wellness, said: “More often than not, individuals fleeing domestic violence leave with nothing – usually just the clothes on their backs.
“Many of them are in a dire financial situation and need support. Scrapping the £90 debt relief order fee last month went a long way in helping survivors access a solution that sorts out their money worries.
“But while debt help is now affordable and accessible because the admin fee has gone, the increase in the cost of PARV has resulted in a dangerous situation, where survivors are having to delay applications for insolvency whilst they save up the fee to protect their anonymity or risk their aggressor finding them.”
McCullough added: “We shouldn’t be forcing domestic violence survivors to jump through hoops. Expecting vulnerable individuals who are already experiencing extreme financial problems to find over £300 seems at best unrealistic and at worst cruel. So, we’re calling on the Government to drop the PARV fee as well.”
