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Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

11 OCT 2012

Reform of the Process to Apply for Bankruptcy and Compulsory Winding Up - Government's summary of Responses

The Insolvency Service have published their summary of the responses to the Reform of the Process to Apply for Bankruptcy and Compulsory Winding Up. The Ministerial Statement noted:

"Response Statement placed in both Houses: 9 October 2012



At the end of last year the Government consulted on proposals to reform court processes for entry into bankruptcy and compulsory winding up.


These built upon earlier proposals consulted on by the previous administration to reform the debtor bankruptcy petition process, that is where the indebted individual is petitioning for their own bankruptcy. The consultation also proposed to replace the courts in the order-making process in creditor petition bankruptcy and certain company winding up petitions with a new administrative process.


Responses to our consultation showed that there is still general support for reform of the debtor petition bankruptcy process.  Many concerns were expressed, however, about the proposals for introducing an administrative regime to remove courts from the order-making process in creditor petition bankruptcy and company winding up proceedings.


Having considered the consultation responses, the Government has decided to take forward changes just to the process for dealing with debtor bankruptcy applications and has today included the measure as a proposed new clause in the Enterprise and Regulatory Reform Bill. Instead of applying to the court for a bankruptcy order, individuals will instead make a bankruptcy application to an Adjudicator, which would be a new office based within the Insolvency Service.


Taking courts out of the process of considering bankruptcy petitions presented by debtors will free up court resources to deal with matters which require judicial input and provide scope for the introduction of a  modern, electronic application process. 




Minister for Employment Relations, Consumer and Postal Affairs

Department for Business, Innovation and Skills"


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