DIY Bankruptcies

Such is the extent of the mounting backlog of bankruptcy applications in the UK; the government is proposing to introduce a new system of online, self-service insolvencies. Essentially, for those people who which to declare themselves bankrupt, they will be able to avoid the trip to court and the huge queue that it entails. In some areas of England and Wales, the wait can be as long as three months between making the initial application to the court and being granted a bankruptcy order. This is a huge amount of time for those facing the most severe financial difficulties to wait for an injunction to save them from their creditors. The new measures are intended to cut this highly stressful and potentially damaging waiting time from months to days.

Of course, bankruptcy should be the debt solution of last resort when you find yourself facing the problem of mounting debt. After all, your home and other assets could be sold to help pay off your creditors. Also, after your living expenses are deducted from your earnings, the remainder might be used to make monthly payments to your creditors as the result of an Income Payments Order. Not to mention the lasting implications on any future career plans and damage to your credit rating. Bankruptcies are also listed in your local newspaper so there is the stigma surrounding insolvency to deal with too. If you were thinking that these things, as difficult as they may be, it is worth remembering that your student loan, outstanding fines, child support arrears some other debts aren’t covered. It’s essential that no-one look upon this as an easy way out of quick-fix debt solution.