UK taking a ‘US approach’ to bankruptcy
Declaring oneself bankrupt is becoming increasingly easy to do, according to one independent financial adviser.
Belgravia Insurance Consultants claimed that there is now “less stigma” attached to bankruptcy and the UK is moving to “a more US approach”.
In fact, such is the increase in popularity of individual voluntary arrangements, the many providers no longer choose to administer them “face to face”.
“If it can be done remotely then it’s really more of a streamlined process rather than someone sitting down face to face,” said Paul White, consultant with Belgravia.
“There is more of this remote advice going on so cases like these are being treated more casually.”
In April 2004, bankruptcy laws changed to make it easier for people to declare themselves bankrupt in a bid to help those in financial difficulty and encourage entrepreneurship.
Now, the length of time that someone is bankrupt can be as short as 12 months.