There has been much talk in recent months regarding the new quickie bankruptcy procedure that may be introduced.
It appears to me, as a licensed insolvency practitioner, that there are both pros and cons to any new system. But from a practical point of view, I would have thought that rather than change the entire system and laws, it would be much easier to keep the present system and merely add a new procedure by which any bankrupt can apply to court for an early discharge.
The application would be accompanied by a short report by an official receiver/trustee, giving their opinion on the reasons for the bankruptcy.
Any application for an early discharge would also be accompanied by an offer from the bankrupt to make a reasonable contribution, in a fixed sum, from his subsequent income towards the costs of original bankruptcy.
As a practitioner who deals with a large a number of bankruptcies, it is my personal view that out of the 20,000 plus bankruptcies per year, this early discharge would be applied for by no more than 1,000 at most.
Gerald Krasner FCA,