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New plans for bankruptcy orders

June 23, 2015 | Financial Saviour

The latest news coming in from the insolvency world is that debtors won’t need sign off from an insolvency practitioner when completing a future application for bankruptcy online.

According to inspector general and Insolvency Service chief executive Sarah Albon, debtors will find it easier to make bankruptcy petitions and that these changes to the process which are set to take effect immediately will ultimately free up the court’s time.

Speaking to representatives at the annual conference for the Institute of Chartered Accountants in England & Wales (ICAEW) for its Insolvency and Restructuring division, Albon explained that the new framework for bankruptcy enables people to make decisions on their own that are in line with the government’s current thinking, and also confirmed that the Insolvency Service will be on the lookout for potential abuse of the new system.

This is all part of the new adjudicator role for the Insolvency Service as stated in the Enterprise and Regulatory Reform Act 2013; it is one of the many new responsibilities taken on by the Service this year to replace the role of the court in making bankruptcy orders on petition cases claimed by debtors.

Albon also commented on the stress-reducing impact of these changes which will now see the court only involved in a minority of cases where an individual applies for bankruptcy, but for the most part the need to attend court is no more. The current online application for debt relief orders will also be upgraded by the Insolvency Service.

For any help and advice concerning bankruptcy, insolvency or a range of other financial and business recovery matters, get in touch with Financial Saviour today and our friendly team of experts will assess your situation and help in whatever way we can.

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