Insolvency Service Fears of £11 Million Defecit

[Latch Key Kid]

Hi

Interesting article given some of the recent changes in bankruptcy.

http://www.insolvencynews.com/articl...of-11m-deficit

[Nibbler]

Re: Insolvency Service Fears of £11 Million Defecit

Which would be why they are desperately trying to claw every penny back they can at the moment.

I don't know how that effects the corporate/commercial insolvency regime, but for personal bankrupts it's making a mockery of the idea of a "fresh start".

i.e. claiming 100% of a bankrupts surplus income under an IPA for 3 years.

Right? That encourages people to start again? If they make any sort of effort to better themselves or earn more, then it's all taken.

Previously when 50-70% was taken was fair. You gain, so do the creditors. OK there is a moral obligation to pay back if you can, but if you take it all then people won't try. Instead they will just sit on benefits or minimum income for 12 months until discharged.

[Latch Key Kid]

Re: Insolvency Service Fears of £11 Million Defecit

Hi Nibbler

I more or less agree with everything you say.

However it is early days yet with the new IPA / IPO rules and things dont always work out as first intended and can sometimes backfire so to speak.

It will be interesting to see how many IPOs are sought and what decisions are made as these were in very low numbers over the last few years.

People can always ask for reviews with changes in circumstances etc - I mean just look at the price of diesel & petrol now

[Nibbler]

Re: Insolvency Service Fears of £11 Million Defecit

It will be interesting to see how many IPOs are sought and what decisions are made as these were in very low numbers over the last few years.

Oh agreed..

IPOs in recent years have been low hundreds ish or so in England Wales? Whereas IPAs have been at the 15,000 mark (ish).

Telling figures.......

[Latch Key Kid]

Re: Insolvency Service Fears of £11 Million Defecit

Hi Nibbler

I suppose it is down to advisers to make sure people fully understand the procedure and their rights etc

Also rules can be changed again.

A couple of interesting reports from the I/S that explain the mechanics of it all and well worth a read if you havent already done so.

http://www.insolvency.gov.uk/pdfs/annual2009-10web.pdf

http://www.insolvency.gov.uk/aboutus/corporateplan.pdf