The insolvency trade body, R3, have put forward some new proposals in respect of bankruptcy procedures.
One of the proposals deals with the length of time a person will be bankrupt. At present, the bankrupt will automatically get his / her discharge after 12 months.
The new proposals suggest that the minimum time a person should be bankrupt will be 3 years with an upper limit of 15 years for the worst cases.
It is not clear whether this will act as a deterrent for people taking on additional debt. There are predictions that personal insolvency rates are set to rise as consumer debt levels rise.
For those more vulnerable debtors who are less than £15,000 in debt and have little or no disposable income with which to pay a bankruptcy fee and no assets, the Debt Relief Order is alive and kicking.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
Redman Nichols Butler has had a York office for over five years now and specialises in advising SME businesses in York and North Yorkshire. The Redman Nichols Butler York office address is Westminster Business Centre, Nether Poppleton, York, YO26 6RB.