Applying for bankruptcy – on the internet

By Doireann Ronayne

Bankruptcy applications can now be made online or through the post, according to a government announcement today.

Previously, applications could only be submitted in court, which acted as a deterrent for individuals in debt.

“Many people delay making a petition for bankruptcy because they do not want to appear in court – meaning they can sink further into debt,” said business minister Ian Lucas.

“We want to reduce that delay, while also freeing up valuable court time and resources to deal with other aspects of insolvency.”

Online application will reduce the decision-making process from months to days.

The minister pointed out the serious nature of bankruptcy and said that it is never a first option.

“Bankruptcy should be the option of last resort for those burdened with unmanageable levels of debt,” Mr Lucas added.

“However, once a person has decided that it is the only viable solution for their debt problems, these proposed changes will make it easier for them to proceed into bankruptcy.”

The change does not affect petitions brought by creditors, which will continue to be made in court.

Welcomed by The Insolvency Service and the courts, the move comes at a time when record numbers of people in the UK are declaring bankruptcy.