News

Bankruptcy to be made easier?

Debtors may be able to file for bankruptcy online or by post, under new proposals for the Insolvency Service to ‘streamline’ the current system.

The regulator’s proposals include an option for those who owe money which they have no prospect of repaying to go bankrupt without waiting for a court slot.

This would also mean that decisions on bankruptcy, which would previously have been made by a judge, could be taken by an official appointed by the secretary of state, with judicial input only needed for complex or disputed cases.

The Insolvency Service believes delays of up to three months between people contacting court and a bankruptcy hearing are putting people off applying, allowing their debts to continue to escalate.

The Insolvency Service is currently consulting on its proposals – for more information visit www.insolvency.gov.uk.

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