Early Discharge

Addicted2Chocolate

It looks like at some point in future there will be no more early discharge. ED was bought in with enterprise act in 2004, with the objective of reducing stigma of bankruptcy. As part of the evaluation of the enterprise act the Insolvency Service have looked at whether it has met this objective. they found although people liked getting ED, it had not met the objective of reducing the stigma. So they commissioned a costs and benefits analysis, to see whether benefit of ED exceeds cost or vice versa. The results show that the costs of admistering ED exceed the benefits. So ED will be repealed at some point in future. Not sure how: maybe a LRO (legislative reform order) or new legislation. So enjoy ED whilst you can!

philnicandamy

Thanks for the heads up A2C

Congrats....and hopefully the MS wont hit you for too long

**Edit just heard the good news**

dalip

Wow thanks ADC . Some posters are asking about the abolishing of the notice in the local papers,we believe feb/march 2009 sometime.Can you throw any light on that please?.Dx

Addicted2Chocolate

I have not heard anything about that, and cannot see they will do it. In creditors petition cases, if the bankrupt does not co-operate with the OR, the OR does not know who the creditors are. Creditors may see the advert and then know about the bankruptcy and contact the OR.
I dont think they will be able to abolish advert for debtors petition cases but not for creditors petitions.

dalip wrote: »

Wow thanks ADC . Some posters are asking about the abolishing of the notice in the local papers,we believe feb/march 2009 sometime.Can you throw any light on that please?.Dx

fermi

The proposals were to make advertisement in a newspaper discretionary rather than compulsory. Whether it should happen would then be down to a case by case basis.

It wasn't to abolish advertisement completely.

Cases would still be Gazetted and appear on the IS website in ALL cases.

That was announced in the budget a while back.

Addicted2Chocolate

discretionary sounds fine. I am surprise we have not had any communication on this to the staff at the Insolvency Service!

dalip

I read it a while back in the financial section of the mail on sunday. Think it was to help with the stigma but only in in regards to local notices not the london gazzette.Dx

dalip

Sorry abolish was the wrong word and i crossed with you fermi,i am a slow typer:p .

maxmycardagain

I think ED's should be stopped now ive got mine.....

fermi

Addicted2Chocolate wrote: »

discretionary sounds fine. I am surprise we have not had any communication on this to the staff at the Insolvency Service!

So am I.

Hope they haven't U-Turned again. :rolleyes: As I said in another post, I've lost track of this a bit.

From: http://www.hm-treasury.gov.uk/media/E/3 ... se_524.pdf

Addressing the environment that shapes fear of failure

2.44 The regulatory and legal framework may seem a world away from enterprise aspirations, but people pick up signals from its operation that shape their perceptions around risk and failure. It is within government’s control to influence this, and we will build on earlier changes around insolvency rules.

2.45 The insolvency legislation currently requires insolvency officers to advertise key insolvency events in a newspaper in each and every case. In order to remove unnecessary burdens on creditors of insolvent estates the Government proposes to change the law by the end of 2009 so that insolvency officers have discretion to decide whether or not to place an advertisement in the local press, having regard to the particular circumstances of the case. As virtually all advertisements currently placed appear in local newspapers, this change is likely to lead to a reduction in the perceived level of stigma associated with bankruptcy. Notices will continue to be published in the London, Edinburgh and Belfast Gazettes.

Addicted2Chocolate

thanks fermi. I am ging to ask OR about this! He wont like it, hes old school!
I am off for a nap now, have awful morning sickness.