Quickie Bankruptcies Should Be Avoided
Quickie online bankruptcies are due to be introduced by the Government next year to cater for those with debts under £15000, less than £50 monthly disposable income and assets less than £300.
Recent reports suggest that this ‘Quickie Bankruptcy‘ could be open to abuse, and may lead indebted people to unnecessarily file for bankruptcy . It would become harder for authorities to verify an applicants financial details, and could lead people to break the law by lying about their assets.
Known as a Debt Relief Order, it will allows an applicant to file their order online and avoid lengthy bankruptcy paperwork and legal costs. Once the application has been accepted, the debtor will have their debts will be wiped in a year but without having to go near a bankruptcy court. During the order the applicant must report any changes to their finances, such as if they get a higher paying job or receive a windfall.
One Advice would only ever recommend Bankruptcy as a last resort. There are many other debt solutions which could allow you to make a reduced payment to your creditors as well as keep your assets. Visit the One Advice website or call 0800 048 1752 for advice and information.