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Personal insolvency news for family lawyers

Changes to bankruptcy procedure

The bankruptcy application process and fee were changed on 6th April 2016.

Previously all bankruptcy applications had to be submitted to the court and looked at by a judge. On 6th April 2016, the application process for people wishing to make themselves bankrupt moved online and out of the courts.

This means that a person will now have to fill in a bankruptcy application online rather than using a paper form and there is no longer a need to go to court. Instead, the applicant will submit a completed application electronically to an adjudicator who makes a decision about the application. The new process is set out here.

The process for making someone else bankrupt remains unchanged.

The fee has changed from £705 to £655:

For the first time an applicant can also pay the fee online and in instalments.

The House of Commons Library has recently published a brief outline of bankruptcy procedures in England and Wales, taking account of these changes. It is here. The HoC Library has also published an overview of Individual Voluntary Arrangements (IVAs), including information on: who is eligible to start an IVA; the IVA process; and the advantages and disadvantages of an IVA. It is here.