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Bankruptcy applications
move online
»»APRIL WILL SEE THE
practical steps to transfer
debtor petitions out of the
courts to the Insolvency
Service being finalised.
From 6th April 2016, instead
of going to court, individuals
wanting to apply for
bankruptcy will apply online
via the central UK Government
website, GOV.UK.
The new smart answers page
has already gone live on GOV.
UK, providing information on
the different options available
to help people deal with
unmanageable debt.
People will also be
able to access the online
bankruptcy form on this site,
if they decide that is the most
appropriate solution for their
circumstances.
The intention is to provide
information in one place, on
a trusted government website
which people visit when
exploring what government
services exist to help them
with problem debt. The site
will also prompt and provide
individuals with details on
how and where to contact an
authorised debt advisor.
‘many people are
intimidated by
the idea of going
to court and so
will not consider
bankruptcy’
The decision to take
bankruptcy out of the courts
is one of the reforms being
made to ensure that people
in financial crisis get swift
access to the right insolvency
remedy.
A spokesperson
commented: “We know from
our own research that many
people are intimidated by the
idea of going to court and so
will not consider bankruptcy,
even though they are in
financial crisis and urgently
need debt relief. The new
online form will be easier
to access and use than the
current paper application.”
“Applying for bankruptcy
will still be a big step and one
which people in financial
distress generally only
contemplate when they
believe no other option is
available to them. However, we
are trying to make the process
as clear and straightforward as
possible.”
People will be able to
pay the fee online when
they apply for bankruptcy,
and will be able to pay
by instalments (online
payments only). The new
adjudicator fee will be £130,
replacing the current £180
court fee.
Applications for bankruptcy
submitted online will be
determined by an Adjudicator
within the Insolvency Service.
Once an order has been made,
the case will transfer to the
Official Receiver in the same
way as it does in the current
process.
‘we are trying to
make the process
as clear and
straightforward
as possible’
The courts will accept any
petitions made before or on
5th April 2016, regardless of
the date of the hearing. No
petitions will be accepted
after 5th April 2016 but if
a case is adjourned on or
before 5th April 2016 it will
continue to be dealt with by
the court.
www.gov.uk/insolvencyservice
LOCKSMITHJOURNAL.CO.UK | MAR/APR 2016
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