Drug testing

What the Mail on Sunday Said

Anyone considering Bankruptcy may have experienced fear after reading an article written in The Mail on Sunday with the headline "Bankruptcy cheats face crackdown". But, how much of what was written was in context of the reality of Bankruptcy as it is today?

The article implied that since The Enterprise Act 2002 the rise in the number of people going bankrupt was due to them using the Bankruptcy route as a "Get out of jail free card". The assumption being that The Enterprise Act 2002 made bankruptcy an easy option. However, the writer didn't take into consideration the actions the DTI have taken to raise financial awareness and to ensure better advice is given regarding people's options when faced with personal debt issues.

The article gave the impression that one of the restrictions of bankruptcy was that you could not open a bank account until you are discharged from bankruptcy. However, there are infact 40 basic bank accounts, half of which will allow an undischarged bankrupt to open an account. This in itself indicates the writer of the article is not fully aware of the effect of bankruptcy, therefore giving the impression that the article could possibly be the result of poor research.

The Enterprise Act 2002 (bought into force in April 2004) was made to give honest people a fresh start in life, which would be free from the stress of debt. Not for the purpose of encouraging people to "use insolvency as a way of shaking off creditors". The writer implied that the provision, which allows the IP to request a restriction order on a bankrupt, is hardly used. Perhaps this is because, people who lodge petitions for bankruptcy have not gone out to get themselves into huge amounts of debt and are genuinely unable to repay their debt due to unforeseen circumstances, rather than fraud, recklessness or dishonesty.

If an Insolvency Practitioner suspects fraudulent or criminal behaviour, they will apply for a Bankruptcy Restriction Order (BRO) for the court to assess and decide what action to take.

The writer also states that "New" Government proposals due out in the next few days will make it easier for creditors to set up plans for repayments, an "Individual Voluntary Arrangement". Individual Voluntary Arrangements (IVA's) have infact been around since the 1986 Insolvency Act and used by employees and self employed people.

This only further questions the credibility of the writer and The Mail on Sunday for publishing such an article.

What the writer also doesn't realise is, people who have failed IVA's or not able to get an IVA add to the percentage of people petitioning for bankruptcy.

The worry that this article will have placed on people is not only unnecessary, but also misleading. The reduction in the terms of discharge from bankruptcy is supposed to be a positive change in The Enterprise Act 2002, not a negative one as implied in this article.

If you have sought advice, and you know you have no other option than to take the bankruptcy route then you should not be put off. "Nothing has changed", as Simon Wiggins of Ask the Expert informed one of his posters who read the article and was concerned by it.

If you would like further advice regarding your financial situation FCL Debt Clinic offer free debt advice which will enable you to see what your options are regarding resolving your debt problems.

Nicola Bullimore has been working with people regarding debt issues for a number of years. For more information regarding debt, please visit Debt Questions

limousine chicago service
In The News:

Mr. Cheapies Frugal Budget Tips

So you feel like a hamster spinning your wheel? The... Read More

Out of Credit Card Debt - Without Filing Bankruptcy

To be out of credit card debt is your dream... Read More

The Simple $10 Debt Elimination Solution

Ask a friend what resolutions they made for 2004 and... Read More

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More

Is There A Way Out Of Your Debt Problems?

Do you have multiple debts? Do you have just one... Read More

Debt Management - Is It the Right Choice For You?

Debt Management plans offer credit counseling clients a different and... Read More

Eliminating Credit Card Debt

The overwhelming task of eliminating your debts can often seem... Read More

Reduce Your Debt With These 5 Tips

It's never pleasant to realize that you're in financial hot... Read More

A History of Money and Banking Secrets That Banks Dont Want Published

A History of Money and TradeTo start with a history... Read More

Debt Elimination

If you're reading this article right now I'm sure that... Read More

Senate Passes New Bankruptcy Law

The United States Senate passed a law on March 10,... Read More

5 Methods Toward Reducing Your Debt

Decreasing your debt is paramount to having a good credit... Read More

Bankruptcy Interest Increases as Deadline Approaches

Congress recently passed sweeping legislation that will significantly reform American... Read More

Debt Problems? You Can Negotiate With Your Creditors

It is always possible to negotiate with creditors ? even... Read More

The Effects of Consumer Debt

Consumer Borrowing Consumer borrowing in the UK has now crashed... Read More

New Bankruptcy Law Will Not Protect You from Identity Theft

Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More

Debt Relief -- Why Most Programs Have A 75% Failure Rate

Debt consolidation, equity loans, credit counseling, debt management plans, even... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

Debt

We all know about debt. If you don't have too... Read More

New Bankruptcy Legislation May Make it Harder to Find an Attorney

The recently passed Bankruptcy Abuse prevention and Consumer Protection Act... Read More

Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40%... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through... Read More

Credit Card Debt Elimination

Credit card debt elimination can be done with a good... Read More

Learn The Five Key Debt Reduction Steps You Must Take Immediately!

Step 1. The purpose of this first step is to... Read More

Is My Credit Card Debt A Problem?

For most Americans, credit card debt is a dangerous and... Read More

induction bulb induction lighting fixtures Pete's produce ..