People in Britain may find themselves faced with bankruptcy unwittingly, as the government has introduced an online scheme that will allow those with large debts to file for insolvency without going to court.
This move is a concern for those in the industry, as “malicious bankruptcies” could be witnessed, with people being bankrupted by someone other than themselves, the Financial Mail reports.
If this occurred, the victim could potentially lose their home and president of R3 Peter Sargent was quoted as saying that “there is no requirement for anyone to take professional advice”, which is a worry.
Furthermore, the news source observed that spontaneous actions – perhaps driven by drinking – leading to petitioning for bankruptcy could be regretted later.
Alan O’Sullivan of This is Money recently predicted that insolvencies in the country will reach “historic highs” in 2010, as bankruptcy proceedings are easily available and the majority of debtors prefer this method.
By Sarah Adie