Online bankruptcy petitions risk abuse

05/03/2010

Insolvency practitioners are warning that allowing bankruptcies to be processed online could open the door to fraud and abuse.

17,000 individuals and businesses were declared bankrupt in 2009 – all of which were dealt with through the courts.

The change is one of several amendments to the processes for insolvency and bankruptcy due to take effect on April the 6th.

Some professionals are concerned about the risk of criminals attempting to blackmail people with personal debt situation? Take our Debt Calculator test today!'>financial problems, by threatening to file bankruptcy petitions against them.

The reforms have already been criticised for increasing the cost of declaring bankruptcy – making it potentially harder for people with unmanageable levels of personal debt to write it off.

EuroDebt Vance Parsons says: "We have heard that the cost of personal bankruptcy has risen by £90 and the total costs will now be around £600 to seek debt relief from your creditors.

"The consultation to remove the court from the process has received mixed reactions. We believe that you should speak to an Insolvency Practitioner before taking a major step like bankruptcy, that is why we offer a bankruptcy assistance service."

• Share
• 
• 
• Store
• 
• Follow
•