Bankruptcy Application Online moves a step closer
- 08 Dec 2021
If you want to go bankrupt you have to complete the necessary application forms and then take them in person to your local County Court. However a significant step forward has now been made towards enabling the process to be carried out online.
The Enterprise and Regulatory Reform (ERR) Act 2013 which was passed into law on the 25th April 2013 allows an individual to submit a bankruptcy application via an online service.
The impact of the ERR Act on Bankruptcy Applications
The main impact of being able to submit your application forms online is you will no longer have to go to your local Court to go Bankrupt. In addition your application will no longer have to be considered by a Judge. Instead the forms will be reviewed by an adjudicator employed by the government’s Insolvency Service.
The adjudicator will decide whether you meet the necessary criteria. If you do you will automatically be made bankrupt. Once the bankruptcy petition is issued you will be contacted by the Official Receiver (OR). You will still have to have a telephone interview with them as is currently the case.
BE Tip: One implication of the new online service will be that it will be critical that you complete your bankruptcy forms correctly. If there are errors the adjudicator will be unable to make you bankrupt without returning your forms to you for correction first.
What advantages will an online Bankruptcy application process bring?
Not having to visit your local Court will offer some significant advantages. The first is that you will save time and money in terms of travel. In addition the process currently undertaken at the Court can typically take half a day. This would no longer be necessary.
The second is that one of the things that puts many people off bankruptcy is the worry of having to go to the Court and actually meeting a Judge. The new online process will mean that you no longer have to do this.
BE Tip: It is very unlikely that the online application system will make the cost of going bankrupt any cheaper. The majority of this cost already goes towards administering your bankruptcy. As such the Insolvency Service will not have any incentive to reduce this.
When will you be able to make a Bankruptcy application online?
Do not hold your breath. The Insolvency Service has made clear that it will not be until sometime in 2015 before they have the facilities available for online bankruptcy applications. The reasons they have stated for this are that it will take time to develop the necessary online systems and train a sufficient number of people who can act as adjudicators.
However these time scales may slip. Often Government departments take far longer to implement change that they would like. As such the implementation of online bankruptcy may not happen until well into 2016 or even beyond.
BE Tip: If you have decided to go Bankrupt you should not delay in the hope of being able to submit your application online in the near future. The route of applying in person at the court is the only option open to you for the foreseeable future.