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Govt proposes online bankruptcies

Published on 13 Nov 2009 under category: legal

The government has announced plans which would see people be able to apply for bankruptcy online.

This scheme has been proposed in a bid to cut the waiting time between a person filing for bankruptcy and their bid being accepted.

The government revealed that some people faced waits of up to three months under the current system in which applications must be made through court.

Ian Lucas, the business minister, said that many people are put off from applying due to the fact they have to go through the courts.

He commented that this could delay applications, which may see a further deterioration in a person's financial state.

Mr Lucas said: "Once a person has decided that it [bankruptcy] is the only viable solution for their debt problems, these proposed changes will make it easier for them to proceed into bankruptcy."

Under the new plans people would also be able to apply for bankruptcy through the post.

Consultation on the proposals will close on February 8th.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.