- contact & find
-
your local office
get phone numbers & directions, or freephone...0845 555 8844
- Bankruptcy is 'too easy'...
Wednesday 20 January 2010 -
Dains say that changes to the bankruptcy laws announced this month have attracted criticism that the procedure is becoming too easy, with little penalty for individuals who are unable to pay their debts.
Nicki Hawksley, Business Recovery and Insolvency Partner at Dains said “The government has announced that debtors will soon be able to apply for bankruptcy by post or online, bypassing the court system altogether. This follows the recent reduction in the time it takes to be discharged from bankruptcy to 12 months, and last year’s decision by the Insolvency Service to stop publishing the names of debtors in appropriate journals”.
However, critics have argued that with little stigma attached to bankruptcy, the system now provides no incentive for people to try to pay their debts off first, and only use bankruptcy as a last resort.
In addition, easier bankruptcy could result in fewer people using Individual Voluntary Agreements (IVAs), where they enter an arrangement to pay back a proportion of their debts, but get to keep their assets. However, since these must be arranged through a licensed Insolvency Practitioner, they may prove more difficult to arrange than bankruptcies.
For more information or advice on this matter please contact Nicki Hawksley on tel: 0845 555 8844 or email insolvency@dains.com
Primary offices at... Birmingham, Burton, Derby, Lichfield and Rugeleylatest headlines
- Fake Tax Website Warning... (Monday 06 September 2010)
- End in sight for compulsory retirement... (Thursday 02 September 2010)
- Rules on company car replacements are changed... (Wednesday 25 August 2010)
- Government confirms minimum wage rise... (Tuesday 17 August 2010)
- Claiming back the cost of cars... (Monday 09 August 2010)
- Registering to Pay VAT online... (Monday 02 August 2010)
- Automated Tax Bills... (Monday 26 July 2010)
- News Archive »