The government has commissioned a consultation on the bankruptcy procedure which is due to be completed in February 2010. If this consultation eventually becomes law, it will undoubtedly help to speed-up the whole bankruptcy process for heavily indebted consumers and ultimately free-up valuable court time.
At present, the current bankruptcy procedure can sometimes take months to complete due to its various stages and waiting times. The new reforms will allow the individual to apply either online or by post for bankruptcy, without the need or stigma of going through the courts. To ensure that this doesn’t make bankruptcy an easy option, key decision makers will be in place to complete a number of stringent checks on suitability and compliance.
Whilst bankruptcy may well be the most appropriate solution for some, it is not always the only solution. Bankruptcy has serious implications; it is a legal procedure in which inability to pay debts is declared and where a third party takes over the handling of your financial affairs for the benefit of creditors. Bankruptcy leads to liquidation of assets and available monthly income and then division amongst creditors. It may restrict employment in certain sectors and almost certainly lead to a home being sold.
The best course of action before choosing bankruptcy as a debt solution to serious debt problems is to obtain advice. I would recommend anyone with serious debt problems obtains impartial debt advice in order to seek the most appropriate solution to their particular circumstances.
Tags: bankruptcy, Bankruptcy Advice, Bankruptcy Procedures, debt management