Laws offer hope to those in debt

Thousands of struggling mortgage holders will be given the chance to write down some of their debt under new laws designed to keep them in their homes.

Under the bankruptcy and insolvency proposals, those in arrears will be allowed to reach a deal with their creditors, allowing them write down some of the debt and spread payments over a six-year period.

However, a majority of creditors, such as banks, will have to agree to the deals on a case-by-case basis.