Bankruptcy Online

<	Bankruptcy to be available online and by post under Government proposals 14th November 2009 Proposals to allow individuals to submit a bankruptcy application online or through the post, rather than in a court, have been outlined by the Government. The move will make it quicker and easier for people to declare bankruptcy. Research has found that, in some parts of England and Wales, debtors faced delays of up to three months between first contacting the court to the making of the bankruptcy order. The proposed changes will reduce this waiting period, with a debtor being able to file their petition directly to a decision-maker, appointed by the Secretary of State. These decision-makers will consider each online and postal bankruptcy petition, carrying out rigorous checks of the information to make sure the applicant meets the criteria for bankruptcy. They will then provide the applicant with a decision on their petition - often in days rather than weeks or months. "Bankruptcy should be the option of last resort for those burdened with unmanageable levels of debt, and this won’t change under our proposed reforms," said Minister for Business, Ian Lucas. "However, once a person has decided that it is the only viable solution for their debt problems, these proposed changes will make it easier for them to proceed into bankruptcy. “Many people delay making a petition for bankruptcy because they do not want to appear in court – meaning they can sink further into debt. We want to reduce that delay, while also freeing up valuable court time and resources to deal with other aspects of insolvency. The proposals apply only to bankruptcy petitions made by the individual in debt. Petitions brought by creditors will still have to made to the court. The consultation closes on the 8th of February 2010.

Bankruptcy to be available online and by post under Government proposals
14th November 2009

Proposals to allow individuals to submit a bankruptcy application online or through the post, rather than in a court, have been outlined by the Government. The move will make it quicker and easier for people to declare bankruptcy.

Research has found that, in some parts of England and Wales, debtors faced delays of up to three months between first contacting the court to the making of the bankruptcy order. The proposed changes will reduce this waiting period, with a debtor being able to file their petition directly to a decision-maker, appointed by the Secretary of State.

These decision-makers will consider each online and postal bankruptcy petition, carrying out rigorous checks of the information to make sure the applicant meets the criteria for bankruptcy. They will then provide the applicant with a decision on their petition - often in days rather than weeks or months.

"Bankruptcy should be the option of last resort for those burdened with unmanageable levels of debt, and this won’t change under our proposed reforms," said Minister for Business, Ian Lucas. "However, once a person has decided that it is the only viable solution for their debt problems, these proposed changes will make it easier for them to proceed into bankruptcy.

“Many people delay making a petition for bankruptcy because they do not want to appear in court – meaning they can sink further into debt. We want to reduce that delay, while also freeing up valuable court time and resources to deal with other aspects of insolvency.

The proposals apply only to bankruptcy petitions made by the individual in debt. Petitions brought by creditors will still have to made to the court. The consultation closes on the 8th of February 2010.

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