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New Plans to 'Streamline' Bankruptcy Announced



The Insolvency Service has reported that Edward Davey, the Business Minister, has announced proposals to 'streamline' the bankruptcy process, which could make it easier for individuals and businesses with serious debt problems to get help.

Streamlining Bankruptcy As part of the proposals, borrowers seriously struggling with their debts would be able to apply for bankruptcy without always having to go to court - as long as there is no disagreement between the borrower and their lenders.

The way things currently stand, all individuals who need to go bankrupt have to attend court, so their case can be assessed.

If the plans come into force, bankruptcy applications could be made online, which could be much more convenient for some people than applying with a traditional paper application form.

The bankruptcy process can be difficult for many people to deal with and potentially put some people off applying. The result could be that people's debts actually get worse before action is finally taken, either by them or by their lenders.

Borrowers should also keep in mind that there are often alternatives to bankruptcy - such as an IVA [Individual Voluntary Arrangement], which aims to prevent the sale of the home. Anyone with unmanageable debts should discuss all their options with an expert.



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