Why debt can be such a heavy burden for domestic abuse survivors

Unmanageable debt can have a devastating effect on a person’s mental health.

In some cases, an insolvency solution can offer financial and emotional relief.

But for survivors of domestic abuse, there is a huge obstacle in their path.

This is because an insolvency solution means a person's details - including their address – is added to a public register. Something that puts them at risk of being tracked down by their abuser.

A survivor can apply to have their address withheld from the register by applying for a ‘persons at risk of violence’ (PARV) order. But there are a number of problems with this.

Firstly, there’s a £318 fee.

Secondly, you have to submit an application form, a witness statement and supporting evidence – thereby reliving abuse, which can prove retraumatising.

Thirdly, applying for a PARV order can delay a debt solution, drawing out a survivor’s financial hardship.

Emma’s story

Emma* left with little more than the clothes on her back to escape her partner’s physical and emotional abuse. For months, she moved between temporary accommodation and staying with friends, living in a constant state of anxiety at the prospect of her violent ex tracking her down.

During this time, Emma’s income was £700 short of covering even her essential costs. She saw her debts spiral to £9,500, falling behind with rent and energy bills. When she came to us, we recommended a debt relief order (DRO). This would freeze her debts for a year, and then write them off if her financial situation didn't improve.

The cost of the PARV order was a significant barrier for Emma, as she had no guaranteed income. With a potentially lengthy wait for approval, there was also the risk that her DRO would be implemented and her address made public before the order was granted. 

In the end, Emma didn’t proceed with the PARV order, due to the cost and the painful prospect of having to relive past trauma. She knew that her address being made public would put her safety at risk, but she was also desperate for debt relief.

Emma’s case highlights the devastating dilemma faced by too many abuse survivors dealing with problem debt – a choice between a healthier financial future or concealing their whereabouts from a violent ex-partner. Whichever way they jump, their fresh start is in jeopardy. 

What we want to see

We’re calling for the insolvency register to be made private so only organisations with a legitimate interest, like lenders and employers, can see it.

Other solutions we’ve suggested include trusting the debt professionals setting up insolvency solutions to decide when it’s appropriate to withhold addresses from the register, removing the need for court involvement. Or scrapping the £318 PARV order fee.

As part of our campaign, we organised a roundtable in parliament hosted by Emily Darlington MP and attended by representatives from the Ministry of Justice UK and the Insolvency Service. We’re hopeful that our campaign will result in domestic abuse survivors being able to access timely, effective debt support without unnecessary barriers in the very near future.

*We've changed our customer's name to protect their identity