The government’s Insolvency Service has announced that in the future when someone goes bankrupt online, they will not need their bankruptcy forms to be signed off by an IP or Insolvency Practitioner.
What this will do is to streamline the process of going bankrupt, and also “free-up” the court’s time, thus saving money.
The Inspector General and Chief Executive of the Insolvency Service, Sarah Albon said, “Once the provisions are implemented, an individual seeking the protection of bankruptcy will follow a new process.”
“They will complete an online application and submit their application to the newly created office of the adjudicator, rather than to the court.”
She went on to say, “As a result of the changes, the court will only be involved in a minority of cases where an individual applies for bankruptcy. These will be cases involving an appeal or a post-order application. In this way, much valuable court time will be freed up.”
She explained that the changes will allow the debtor “easier access to bankruptcy and the removal of the need to attend court, an experience which many find incredibly stressful.”
Bankruptcy can be a source of stress for many people, and the act of having to go to the courts, file the petition and possibly stand before a judge adds to that stress. This change will help in alleviating the stress.
One issue that may arise is we see a spike in the number of people going bankrupt. People who were considering bankruptcy, but who had put it off due to the procedure and process may now file bankruptcy. It also may influence some debtors who would not have considered bankruptcy, but now due to the ease, may decide to just go bankrupt.