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Financial solutions company Think Money welcomes Government proposals to make applying for bankruptcy simpler.
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Financial solutions company Think Money welcomes Government proposals to 'streamline' the bankruptcy process by allowing some people to apply without going to court.
The company commented that it could help to ensure fewer vulnerable borrowers delay getting the help they need - but added that anyone considering bankruptcy should seek professional debt advice before they choose a solution.
Under the proposals, borrowers applying for bankruptcy would be able to submit applications online or using the traditional paper application form, but would not have to go to court unless there is a disagreement between the borrower and their lenders.
It is thought that by cutting the courts out of the process in this way, significant savings could be made for both struggling borrowers and the taxpayer. Currently, borrowers must pay up to £700 to apply for bankruptcy, £175 of which is a court fee.
An expert at Think Money commented:
"Although bankruptcy helps many thousands of people every year, the process can be quite complicated and this may put some people off applying. That in turn can allow time for people's debt problems to get much worse before action is finally taken, either by them or by their lenders.
"We would welcome a simplification of the process, as it would help to ensure more people get help before their situation has had a chance to deteriorate further.
"However, people should keep in mind that bankruptcy carries serious consequences - such as the possible forced sale of the home or other valuable assets, or the potential impact on some types of employment - and as such they should not take the decision to go bankrupt lightly. It's essential that people get professional debt advice before deciding on any debt solution.
"Borrowers should also keep in mind that there are often alternatives to bankruptcy - such as an IVA [Individual Voluntary Arrangement], which aims to prevent the sale of the home. Anyone with unmanageable debts should discuss all their options with an expert."
-ENDS-
Notes to Editors
Think Money is one of the UK's leading financial solutions providers, delivering a comprehensive range of financial solutions, including loan, insurance and banking solutions.
Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.
For more information, visit the Think Money website at http://www.thinkmoney.com/.
Think Money IVA section: http://www.thinkmoney.com/debt/IVA/.
Contact:
Melanie Taylor
Think Money
Tel: 0845 056 6480
Contact Information
Melanie Taylor
Think Money
Pennington House
Carolina Way
Manchester
Manchester
M50 2ZY
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