Government unveils bankruptcy revamp
Commercial insurance
19th November 2009
The current system of bankruptcy procedures is being overhauled to speed up current processes and assist people who have got into debt.
Britain's Insolvency Service has unveiled its Consultation on Reforming Debtor Petition Bankruptcy, with new proposals including allowing individuals to submit applications online rather than going through the courts.
According to the organisation, the plans will reduce costs and delays for those in money trouble who have no hope of ever clearing their debts in full.
Minister for business Ian Lucas remarked: "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."
Based on research conducted in 2007, which indicated that delays of up to three months were being seen in bankruptcy orders being issued, the new system aims to address the problem.
Insurance for business customers may be interested to learn that recent statistics from the Insolvency Service showed that a total of 4,716 compulsory liquidations and creditors' voluntary liquidations took place during the three months to September, a decline of 4.7 per cent compared with the previous quarter but 14.6 per cent higher year-on-year.
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