Faster bankruptcy process welcomed

Wednesday, November 18th 2009

Plans to speed up the bankruptcy process have been welcomed by the Consumer Credit Counselling Service (CCCS).

The Department for Business, Innovation and Skills recently announced that it wants to enable individuals to submit an application for bankruptcy online or through the post instead of in court.

According to the CCCS, this change "makes sense" as it will help struggling consumers to ease any financial pressures they may be facing more quickly.

However, a spokesperson for the charity said that going down the bankruptcy route is not always right for everyone, especially as it can affect credit ratings and future employment.

"It is important to remember that bankruptcy, while 'solving' your immediate debt problems with one sweep of the brush, has many longer-term impacts on your life," he commented.

The Department for Business, Innovation and Skills is consulting on its proposals until February 8th 2010.

Some 18,347 people in England and Wales went bankrupt in the third quarter of 2009, according to the Insolvency Service.