Bankruptcy changes `would help people in debt`

Proposals to change the way individuals can declare themselves bankrupt would help people in debt and would also cut court costs, the BBC reports.

If they became law, the proposed changes would let people apply to become bankrupt online or by post, rather than needing to go to court.

Government research had discovered that people in debt are, in some cases, waiting for three months before their applications could be heard in court.

“Many people delay making a petition for bankruptcy because they do not want to appear in court,” said Business Minister Ian Lucas, “meaning they can sink further into debt.”

Helping people in debt, the changes would also cut court costs, said the Department for Business, Innovation and Skills (BIS). “The proposals… will make it quicker and easier for people who are overwhelmed by debts, and have no means of ever fully repaying them, to seek relief through bankruptcy,” said a BIS spokesperson.

The consultation phase will end in February.

So far this year, nearly 58,000 people have been declared bankrupt in England and Wales, while over 34,000 have entered an IVA (Individual Voluntary Arrangement) and more than 6,000 have entered a DRO (Debt Relief Order).



Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

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