Under the Enterprise Act, from April this year it will be possible to wipe out university loans through an expedited bankruptcy process that takes 12 months or less instead of the current three years.
Insolvency specialists warned this week that a five-month gap between the introduction of the new regime and the exclusion of student loans from bankruptcy – due to take effect from September – could make the recent leap in student bankruptcy look mild.
David Ingram, a partner at Chantrey Vellacott, said: ‘This is likely to result in a huge increase in the level of bankruptcies, particularly among students.’ He said the 900 students who were declared bankrupt last year were likely to prove ‘the tip of an iceberg’.
The education department, which is responsible for the Student Loans Company, refused to say whether it was aware the reforms could prompt a further surge in student bankruptcies.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children