New online application process for bankruptcy

fatbelly

Anyone know any of the detail on this? It's due in on April 6th. The most recent info I can find is in

http://content.govdelivery.com/accounts/UKIS/bulletins/126fdb8

As part of the Insolvency Service’s work to deliver more of our services digitally, from April 2016 we will be introducing a new system to deliver online debt solutions (also known as debtor petition reform), removing the courts from making debtor petition bankruptcy cases.

Going forward, debtor petitions will be submitted via an online bankruptcy application and administered by a Secretary of State-appointed adjudicator. Liz Thomas, currently Deputy Director of Business Services, has been appointed as the Adjudicator and will be taking up the role from April 2016.

We are also improving the existing web application for Debt Relief Orders (DROs) – an alternative to bankruptcy for people with debts of less than £20,000 and few assets.

Also in the planning is for debtors to be able to learn about their options for debt management or relief through GOV.UK. This will help them to get a provisional idea of what might be the most appropriate and sustainable solution to their personal circumstances. GOV.UK will offer information about the available options (not formal debt advice) and signpost to debt advice organisations.

During the development phase of the new service we have carried out user research on a fortnightly basis with individuals who have problem debt. At these sessions we ask individuals to road test prototypes of the new bankruptcy and DRO applications, to ensure the online steps are easy to understand and complete.

Working closely with organisations from the debt advice sector to identify suitable participants, we will shortly be inviting individuals to use our bankruptcy application system to generate a statement of affairs. The statement of affairs can then be printed and presented to the court in the usual manner; the court retains the power to grant a bankruptcy order at first instance until April 2016.

We want to make sure all our online services are as clear and simple to use as possible. By working with individuals who have decided to apply for bankruptcy, we will gain insight on how individuals manage the form at a time of financial distress, helping us to refine the system to make it work for the public.

The old 6.27s and 6.28 (and EX160) will all be redundant in 10 weeks and there seems precious little information about the new process and fee (I think we can safely assume the court fee is going but will the OR fees be reduced?)

In a nutshell, if planning for bankruptcy, is it best now to speed things up or slow things down?

Anyone been involved in testing the new system?

Cobalt77

Working closely with organisations from the debt advice sector to identify suitable participants, we will shortly be inviting individuals to use our bankruptcy application system to generate a statement of affairs. The statement of affairs can then be printed and presented to the court in the usual manner;

So, the Government has probably pi.ssed half a million of taxpayers money away producing something which has already existed for countless years and likely been used by thousands of people on that Stoozing site for free?

Good to know nothing ever changes

TheGardener

...the people who come up with these ideas are rarely the ones who have had to use the previous systems - they don't know what they need to know in order to make it better and keep re-inventing the wheel. Someone probably thinks they've come up with a really wizzy idea to 'save' money and probably got brownie points for doing it - but was oblivious to the fact it already existed...

But the end of the 6.27 & .28 forms must be a welcome change - they were appalling. However, I must say I think some of the elements they are proposing to get rid of do seem to remove the prospect of someone looking you in the eye and asking "are you sure this is what you want to do - have you taken advice and ... is this statement the truth?" and sometimes the impact of that 'human factor' can be useful when dealing with the minority who use BR as a bit of a scam... I don't think BR should ever be an easy option - there are too many people who will think it is and then realise too late that there were other options and that it cant be undone.

Cobalt77

Totally spot on, TheGardener.

In fact, I've spent a huge amount of time involved in the tech sector. Contrary to what many people believe, anything done on the internet generally causes more harm than good.

For example, take online dating. By making it easy to "meet, chat and interact" with random strangers at the touch of a button, people find it easier to do that instead of actually talking with their partners to resolve problems.

Other half has a "headache"? Don't worry! There are (apparently!) apps which will let you meet up with strangers in your area for casual nookie within minutes.

Oh, and put that gambling app on your phone. Then, you can easily get yourself kippered up in debt 24/7. We've made it easy for you. Just press that big green button!

And don't even get me started about Fakebook......

When it comes to personalised legal, medical or financial advice - there is absolutely no substitute for knowledgeable face-to-face personal advice (or, if that isn't available, knowledgeable personal advice like on this forum)

At this rate, people will be filing for Bankruptcy by pressing a button on their iPhones - without ever understanding the full implications.

If the Government put half the money it's spent on this new online system into debt charities like StepChange / National Debtline, there wouldn't be a problem in the first place.

/rant-over

fatbelly

I note the impact assessment from 3 years ago

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/34652/12-1216-reform-process-debtors-apply-bankruptcy-impact.pdf

talked about the court fee being replaced by an application fee of £80 (no remission) and the bankruptcy deposit staying as is.

So those who would get full remission of the court fee under the present system (on JSA, IS, IBESA, GPC) would still find it cheaper to go now under the 'old' system; others would be better waiting; likewise anyone concerned about spending a morning in court for whatever reason would be better waiting

However, the detailed thinking may well have changed in the past 3 years.

DorisTrousers

From what I have heard, and it is on very good authority, debtors will be allowed to pay by installments, similar to the DRO process, but that if no payment is received for a period of time, as yet indeterminate but mooted at 2 months, then funds received will be returned to the debtor.

Payments will be able to be made by cash, debit or credit card(?)

fatbelly

DorisTrousers wrote: »

Payments will be able to be made by cash, debit or credit card(?)

Really ???

I would have expected it to be the same as in DROs, payment being in cash at Payzone or Post Office.

I expect the details will be released eventually, probably April 1st

debt_doctor

I spoke to an Official Receiver that we have known for many years and 'they' (the insolvency offices up and down the country) have been told absolutely nothing about what happens from April.
I'm sure some insolvency unit somewhere is on with it, but they are not sharing anything.
DD

fermi

Great. Just great... sigh

sourcrates

Changes to the Bankrupcy process were mentioned last year during the parliamentary consultation on changes to DRO and Bankrupcy terms.
No definite information was given, just that it was part of a wide range of changes that were in the pipeline.

Will be interesting to see if it makes the whole thing simpler, or more complex for people.

debt_doctor

I rang the Insolvency Service Enquiry Line on Friday on this subject - the 'adviser' said he had asked the question himself several times and was told "Wait until the legislation is published or a policy statement is issued"
Good to see the Insolvency Service have a solid grip on things.......
DD