Currently, homeowners who have fallen seriously in debt are not required to pay their creditors back when they sell their home, provided that they keep up with court repayments.
However, the government has unveiled plans to close what it describes as a 'loophole', allowing those in debt to be forced to use proceeds from the sale to pay off their debts - even if they have kept up with repayments.
Speaking on BBC Radio 4, Sue Edwards from Citizens Advice warned that homeowners could lose control over how they pay off their debts.
"If the government intends to make changes, it does need to make sure that people who do want to repay but can only afford little amounts don't lose their homes," she said.
It is feared that the new law, currently outlined in the Courts and Enforcement Bill, will effectively allow creditors to turn unsecured debts into ones secured against the property.
UK fast purchase property firm National Homebuyers provide solutions for homeowners already in debt, director Julian King says: "Homeowners do not fully explore the options available to them.
"We offer a Sell and Rent Back solution that allows the homeowner to sell their property, pay off debts and remaining living in their home.
"The increasing number of people faced with repossession should find alternatives to taking out loans, which increase their debt.
"Homeowners wanting to remain in their home and sell it, rather than loose it should consider our option. We complete at a timescale that suits their needs and can arrange a rent-free period if necessary."
National Homebuyers guarantee to make an offer to purchase any property regardless of its condition or location in the UK. Their website is www.nationalhomebuyers.co.uk/
