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Think before heading for online bankruptcy says expert

CHANGES in the laws surrounding insolvency may have taken the stigma out of bankruptcy but a leading Sheffield insolvency expert is warning that the new regulations may also be making bankruptcy seem too easy.

The changes implemented at the start of the new financial year on April 6 mean that people facing bankruptcy no longer have to appear in court to present a petition of insolvency but can simply go to the government website and make an online application.

“The official line is that this reduces court involvement and that the courts only need to be involved when something is disputed,” said Adrian Graham, of Sheffield insolvency practice Graywoods.

“But making yourself bankrupt is an enormous step for somebody to take simply by going online and it is important that, no matter how simple the process may seem, they should take proper advice first.

“Before taking such a momentous decision you need to look at things like the equity you have in your property and at the value of your other assets because you can very easily find yourself going down the bankruptcy route when there are still other viable options available.

“With the proper advice and support it may still be possible to reach an agreement with creditors and still maintain your home - and by giving yourself space to breathe and think, you may then discover there are ways to completely turn the situation around to everybody’s satisfaction.

“The humiliation may have been taken out of bankruptcy but the long term implications of taking should a move are still very severe.”

For further information and advice contact the Graywoods team at www.graywoods.co.uk

This was posted in Bdaily's Members' News section by John Highfield .