BusinessBusiness RecoveryBankrupts’ homes targeted

Bankrupts' homes targeted

The government today launched its new bankruptcy regime but faced accusations of being less than human for aggressively pursuing people who went bust before the softening of the law.

Link: New body to protect rights of creditors

The launch of the new regime – the government’s most comprehensive move to give bankrupts a second chance – contained little comfort for many whose financial difficulties predate the legislative changes.

As many as 30,000 face seeing homes or pensions confiscated in circumstances where they would be safe under the new laws. Insolvency practitioners have reported receiving cases from the Official Receiver involving the repossession of homes ‘by the bucket load’.

John McQueen, chief executive of the Bankruptcy Association, said: ‘The Insolvency Service just see numbers but I have been there and met the families and seen the children and the tears when homes have been lost.

I could think like them but I prefer to be human.’

The Protracted Realisations Unit (PRU) of the Insolvency Service targets assets that did not contain value at the time of bankruptcy. The removal of family homes or lifetime savings years after bankruptcy has proved a highly controversial measure.

Malcolm Cohen, business recovery partner at BDO, said: ‘It conflicts with the debtor friendly environment the legislation seeks to create but I cannot see any way around it without the DTI risking potential claims for negligence from the creditors.’

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor