Consultation to remove court role in insolvencies launched

Consultation to remove court role in insolvencies launched

Government launches consultation to streamline bankruptcy and liquidation, with courts taking a back seat

THE GOVERNMENT has today launched a consultation to remove court participation in bankruptcies.

Business minister Edward Davey (pictured) announced proposals for a streamlined bankruptcy and company liquidation system, which eased burdens on the UK courts.

MP Davey said: “Courts have an important role to play in bankruptcy and winding up applications where there is a real dispute between parties. But in simpler cases where there is no real disagreement, a more streamlined route into bankruptcy is needed.

“These reforms should help to deliver better outcomes, reduce unnecessary burdens on creditors and debtors and bring substantial savings for the taxpayer.

“It is essential that we get the detail right, particularly in relation to the level of safeguards required to ensure better results for debtors, while respecting creditors’ rights. That is why I strongly encourage all interested parties to respond to this consultation.”

The consultation entitled ‘Reform of the process to apply for bankruptcy and compulsory winding up petition reform’ includes provisions for online bankruptcy applications. Submitting false information will become a criminal offence and debtors could pay a bankruptcy charge in installments – it currently costs £525 to file for the insolvency process.

Justice minister Jonanthan Djanogly, said the government wants to create an “efficient system” where courts are used as a last resort.

The consultation is due to close on 31 January 2012.

 

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource