Reforming Debtor Petition Bankruptcy and Early Discharge

Thursday 28th October 2010 Written Statements

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I am setting out today this Government’s response to the consultation on Reforming Debtor Petition Bankruptcy and Early Discharge, which closed in February 2010.

In total 37 businesses, individuals, and representative bodies responded to the consultation, with the majority indicating broad support for the proposals. Copies of the non-confidential responses to the consultation are now available on the Insolvency Service website (www.insolvency.gov.uk) together with a summary of those responses.

It is clear from the responses that interested parties see benefits in removing the court from the process in circumstances where it is unnecessary for a court to take a decision. The Insolvency Service will be exploring with Ministry of Justice and HM Courts Services how best to realise those benefits to produce a bankruptcy system that is suitably accessible and affordable, as well as providing an efficient service for all those who need to use it. I expect that this work will result in enhanced and detailed proposals being published in due course.

There was also support for repeal of early discharge. This requires primary legislation, and will therefore be brought forward when parliamentary time allows.

Copies of the analysis of the consultation are being placed in the Libraries.