Bankruptcy should be ‘last resort’

The option of bankruptcy for those struggling with debt management should be considered a last resort, the government has said.

Following proposals to allow people to submit bankruptcy applications online or by post as opposed to in court, Minister for Business Ian Lucas observed that many delay making such petitions because they do not want to appear in front of a judge – “meaning they can sink further into debt”.

He added that bankruptcy should be “the option of last resort” for those with “unmanageable levels” of debt but, for people who have chosen this path, these changes will make the process easier.

Mr Lucas went on to note that by implementing these measures, court time will also be freed up, as will other resources to deal with insolvencies.

Earlier this month, individual voluntary arrangements were highlighted by director at Vantis Business Recovery Nick O’Reilly as being a better route for some debtors to go down than bankruptcy as they are a “lighter touch form of debt relief”.

By Sarah Adie