Draft Enterprise and Regulatory Reform Act 2013 (Consequential amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential amendments) Regulations 2016
Debate between Lord Johnson of Marylebone and Geoffrey Cox
Joseph Johnson
To clarify, let us settle on £8.3 million to £16.6 million as the ballpark estimated savings to the courts from the measures.
If the online application is unsuccessful, the adjudicator must give the debtor a reason for refusing to make a bankruptcy order. The debtor can then appeal or reapply if they wish—on first appeal, to the adjudicator, and on second appeal the matter is referred to a court. That route will be available on second appeal.
Those who do not have access to the internet will be able to apply for bankruptcy with the assistance of third parties such as a friend, relative or approved debt adviser. The system is designed to allow screens to be populated on the applicant’s behalf, with the applicant’s approval. The applicant must check that the application data are accurate and is responsible for submitting the application themselves. Financial intermediaries can be used as a last resort—for example, a debt adviser might be used in a complex case. Insolvency Service officials can provide assistance by telephone in filling in online forms.
On the Small Business, Enterprise and Employment Act 2015 measures, the hon. Gentleman asked how insolvency practitioners will be affected by the tighter reporting timeframe. There was a mixed response to the consultation on reducing the reporting period from six to three months. Concerns expressed included—
Mr Cox
Before my hon. Friend the Minister moves on to the second subject, the hon. Member for Sefton Central asked a question in which I am quite interested: whether the Government intend to extend this process to creditor applications, and not only for the person applying for his own bankruptcy. I wonder if the Minister might answer that.
Joseph Johnson
I am able to tell the Committee that the adjudicator’s role is not a judicial one. It is a role specifically created for determining applications for debtors applying for their own bankruptcy. All other routes into bankruptcy where judicial input is required will continue to be heard in court. I will happily furnish my hon. and learned Friend and, indeed, the Committee, with any further information needed to answer that question.