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.
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.
A spokesperson for financial solutions company Think Money commented: "Although bankruptcy helps many thousands of people every year, the process can be quite daunting and this may put some people off applying. That in turn can allow time for people's debt problems to get much 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."
Comments
No comments for this article yet. Be the first to comment!