A new proposal to reduce the cost of Bankruptcy declaration

Often it’s an irony of a debt-ridden person when he has to bear a cost in order to declare himself bankrupt legally. In order to save a person from this ordeal, now UK’s Business Minister Edward Davey has come up with a new proposal.

Known as Reform of the Process to Apply for Bankruptcy, this proposal aims at saving time and money while concluding bankruptcy cases in the Court. The proposal will try to simplify Bankruptcy cases and will bring relief to a Bankruptcy applicant.

The UK Minister is very upbeat about this proposal and believes that this will save a taxpayer’s hundred of pounds in going bankrupt without following a lengthy Court process. The minister is earnestly seeking opinions from all interested parties on the proposal and he believes that the Court can play an important role in those Bankruptcy cases where there is any dispute between the parties.

In his opinion, in simple Bankruptcy cases without any dispute, the process can be made more streamlined and quicker without the Court’s involvement.

The new proposal has several new clauses that can make the Bankruptcy process very fast and simple. Some of the key elements of this proposal are:

  1. Electronic application processing:
    In this proposal, processing of electronic applications has been proposed. This clause has been aimed at making the process fast and simple.
    A specially appointed Adjudicator will deal with all such applications and the applicant needs not to visit a Court in order to apply for his Bankruptcy.
  2. Seeking free advice:
    The proposal tries to safeguard the debtor’s interests by allowing him to seek advice for free on the debt issues. The debtor can respond to the creditor’s application. By getting the right advice, the debtor can come out of his debt problem and may not go for a Bankruptcy.
  3. Bypassing Court Proceedings:
    The proposal seeks to conceptualize a modern and efficient system that can award Bankruptcy to a debtor without undergoing court proceedings.
    The idea is to make Courts as the last resort to the Bankruptcy cases and avoiding it being the primary step in seeking Bankruptcy.

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