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Cautious welcome for new consultation on bankruptcy

8 November 2011

The ICM has welcomed the consultation launched by the Insolvency Service regarding the reform of the process to apply for bankruptcy and compulsory winding up.

“We will actively consult with our members on this important subject,” says Philip King, Chief Executive of the ICM. “Although Courts remain an important part of the process, a streamlining of the insolvency process where there is no dispute would seem – on the surface – to be reasonable, but only if the rights of creditors are adequately protected and insolvency is not allowed to be seen as an easy option.

“There is always the danger that a streamlined system will be abused, and creditors’ rights must be protected too. Edward Davey, Minister for Employment Relations, Consumer and Postal Affairs, appears to acknowledge this point in his introduction so we will now look at his proposals in detail and respond appropriately.”