Friday 13th of November 2009
People who are in serious debt with no viable route to financial security could be helped by the government’s proposed reform on bankruptcy rules, announced today (November 13th).
Under the reform, indebted Britons would be able to apply for bankruptcy online or through the post, rather than face a lengthy wait for a court appearance - during which time debts can escalate further.
The new laws are a response to research conducted by the Insolvency Service in 2007, which found debt-stricken people often waited for up to three months before they were declared bankrupt.
Ian Lucas, minister for business, said: "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."
However, the government has stated that it will still encourage people to seek professional financial advice before opting for bankruptcy.
Other strategies for exiting financial turmoil that it recommends could include individual voluntary arrangements and debt management plans.
By Rachel Powell
- Alternatives to bankruptcy available, expert notes
- Bankruptcy 'should be a last resort' to tackle debt management issues
- Bankruptcy 'has improved attitude towards debt'
- Insolvency levels rising, figures show
- Negative equity leading to bankruptcy increase, says expert
- IVA help could allay bankruptcy fears
