BR adverts to cease!

[johnnybriggs]

Creditors aren't always financial corporations though.

I may only be talking about a minority of cases but bankruptcy has a place alongside the hatches, matches and despatches and i hope the OR still has the discretion to advertise a bky.

[bigpete]

Interesting to see changes, wonder if this will head north to Scotland? as Quote; Telegraph: "Currently the courts have to inform a number local organisations of a bankruptcy, and it will be advertised in the London Gazette and local newspapers. That will be scrapped under the proposals."

Whilst up here in Scotland, Trust Deeds are published in the Edinburgh Gazette (but not local papers) wonder what will eventually transpire..

I think there will be a lot less IVA's created?

[Shining]

I totally agree that it will make a difference to the route people take. I, like Andy would never have considered bankruptcy, living in a small market town, just the thought of me being in the local paper makes me 100% sure that IVA is the way forward for me. Now all we need is the law changing in respect of the insolvency register. Maybe having to buy a subscription to view it or similar would be the answer. If you haven't already done so please sign Andy's petition re the Insolvency Register.

[aguise]

Lets hope they make the insolvency website listing of iva's and bankrupcy less accessible too, to stop all these companies sending mass mailings to people.

Ang

[lily]

This is a step forward, it will help disolve the stigma and fear of being judged. Lets hope the insolvency register is next.

[sjw]

does anyone have any idea of when this is going to happen cos the notice in the paper has been my main concern when weighing up my options. x

[jane.l]

I have not been in the paper yet and its been nearly 7 months, I have bought the papers every week and seen other bankruptcy notices but never mine!

I think I have been overlooked[;)]

[MelanieGiles]

I'll be controversial here and say that the majority of the clients I see regularly don't give a hoot whether their name goes in the paper or not - they simply want to pay their creditors back, and bankruptcy simply does not do that or as well as an IVA does.

Bankruptcy is more so becoming the easier option, and whilst I agreed with the provisions of the Enterprise Act with regard to traders and people that take risks in business, I am afraid that I do not correlate those same views to consumer debt.

[ianmillington]

Frankly my view is somewhat more sceptical than that. There is an element of spin going on here I believe.

When the Enterprise Act came into force with it came a provision that the Insolvency Service was to be self-funding. I can't help but ask whether this is simply down to the Official not getting enough customers, or rather customers who can pay. That would go a long way to explaining some of the harsh treatment doled out of late to some of the posters on this forum. The Enterprise Act provisions themselves were introduced for the self-same reasons as this measure. I haven't seen everyone setting up small businesses as a result, and I don't really see how this new measure will actually change that.

Having said that, I can see how this will be welcomed by many of those facing a formal insolvency. Now if the Government would level the playing field and order that IVAs were to be for 3 years (which they originally were) then that would really set the cat amongst the pigeons!

Ian

[MelanieGiles]

But with the inconsistent way the OR calculates disposable income, again with the spin that they don't want to make people insolvent again, bankruptcy is still the easier option! I just wonder what the BBA will have to say about this and whether lending policies will change as a result.

[Helpful Advice]

Ironically i agree with Melanie, but there are a proportion of clients who do fear the advert in the paper.

even prior to the changes to IVA's over the past twelve months, with the higher benchmarks set by the banks, Bankruptcy is a softer option for the client, the lesser percentage of debtors would be better off in an IVA than with Bankruptcy due to the more realistic allowances with regard to income and expenditure, the fact that a lesser percentage of the dissposable is taken into account and the fact this lasts only three years, the fact remains that in my eyes the choice between the two boils down to morality. A point I discuss fully with each of my clients prior to their choice of which road to take.

However by the banks making these benchmarks and squeezing the earning potential per case for the IP's they are becoming their own worst enemy, with a greater percentage of debtors taking the debt management route I for one would hope the changes to the advertising of the bankrupcty would mean thoses many debtors who are tucked away in debt managemnt plans through fear of publicity have the opportunity to re-think their situation.

In time one can hope that the banks re-think their position with regard to IVA acceptence levels again.

[MelanieGiles]

Let's hope the IS calls in the reinforcements soon - to cope with all of those new customers who choose the debt avoidance route rather than the route to making a realistic offer of repayment. I can actually see this increasing IVA numbers rather than affecting them, as clients will refuse to enter into neverending DMP agreements but have a bigger carrot of bankruptcy if creditors do not agree to accept a realistic IVA.

And I wonder if the Courts will start being a little more choosy about who they allow to grant a bankrupcty order to? It should not be an automatic right, and more people who an afford to pay ought to be steered to the repayment route rather that debt avoidance.

[Adam Davies]

Hi
Is bankruptcy really debt avoidance Mel ?
Regards

[Helpful Advice]

I totaly agree, an IVA was a fantastic alternative for those who wish to contribute towards their debts,

Bankrupcty should still only be seen as a can't pay option rather than a won't pay and if the banks would only see that they are cutting off their nose to spite their face, by making it harder for those who want to pay a contibution back for the debts they have!

By lifting the acceptance levels of IVA's they themselves are making Bankrupcty a better alternative and by cutting the IP's fee's they are alienating, the main people that have helped to recover a large proportion of debt for them that with the growth in numbers of bankruptcies will only see the level of debt recovery conciderably reduce

Regards Brett

[MelanieGiles]

It depends whether you can afford to pay contributions or not. If debtors can afford to pay, and creditors are realistic about the allowances - or say we managed to get the IS, BBA and the insolvency professions to agree on a realistic expenditure allowance which was operated across the board, and the time periods were similar as in Scotland, then I cannot see the majority of people plumping for bankruptcy.

In my book if you borrow the money, and can afford to pay some of it back, then that has to be a preferable way forward - but that is just my opinion and how I would deal with financial difficulties if, god forbid, I ran into trouble. I accept that it is not the same for everyone, and that people should make their decisions based upon what they feel and not external influences.