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

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Google News Updated : Sat, 11 Oct 2008 23:50:53 GMT GOP Officials Hope for Stability From McCain - New York Times Voice of America GOP Officials Hope for Stability From McCain New York Times - 1 hour ago By ADAM NAGOURNEY and ELISABETH BUMILLER Republican leaders across the country said Saturday that they were worried that Senator John McCain was heading for defeat unless he brought stability to his presidential candidacy and settled on a clear message ... Antiwar Protestor Disrupts McCain Iowa Rally Washington Post Obama needs 75 percent turnout in Philadelphia, says Rendell CNN Political Ticker The Weekly Standard - Summit Daily News - USA Today - WNCT all 1,087 news articles Publ.Date : Sat, 11 Oct 2008 22:23:47 GMT Got $700 Billion? Sweat the Details - New York Times Telegraph.co.uk Got $700 Billion? Sweat the Details New York Times - 3 hours ago The bailout plan gives Henry M. Paulson Jr., the Treasury secretary, three broad choices in buying assets. By ALAN S. BLINDER THE House of Representatives was against the bailout bill before it was for it. US firms up plan to buy into banks to stem crisis Reuters Paulson Indicates Need to Purchase Bank Equity `Soon as We Can' Bloomberg Los Angeles Times - Washington Post - The Miami Herald - International Herald Tribune all 2,358 news articles Publ.Date : Sat, 11 Oct 2008 20:39:07 GMT Nobel Peace Prize winner wants jobs for the young - International Herald Tribune Times Online Nobel Peace Prize winner wants jobs for the young International Herald Tribune - 10 hours ago AP HELSINKI, Finland: Nobel Peace Prize winner Martti Ahtisaari said Saturday that finding jobs for more than 1 billion young people in the Middle East and Asia will be a major challenge to peacebuilding in the next decade. Video: Ex-Finland President Wins Nobel Peace Prize AssociatedPress Nobel Finn Wall Street Journal Voice of America - Times Online - Burlington Hawk Eye all 1,453 news articles Publ.Date : Sat, 11 Oct 2008 13:12:07 GMT YouTube to play full TV episodes with ads - Afterdawn.com Vancouver Sun YouTube to play full TV episodes with ads Afterdawn.com - 2 hours ago Google has announced that it will begin offering full-length TV episodes through its YouTube platform beginning this week, thanks to a content deal with CBS. YouTube to Offer TV Shows With Ads Strewn Through New York Times YouTube beams up Star Trek for long-form video, prominent new ads CNET News Wall Street Journal - eFluxMedia - Silicon Alley Insider - Bizjournals.com all 109 news articles Publ.Date : Sat, 11 Oct 2008 21:13:12 GMT US space tourist set for blast-off - Reuters Canada.com US space tourist set for blast-off Reuters - 40 minutes ago By Maria Golovnina BAIKONUR, Kazakhstan (Reuters) - US video game magnate Richard Garriott will blast off into space aboard a Russian spaceship on Sunday watched by his father, a NASA astronaut who went into space at the height of the Cold War. US space tourist set for launch BBC News Russian space chief reassures US partners The Associated Press Times Online - USA Today - Spaceflight Now - RedOrbit all 287 news articles Publ.Date : Sat, 11 Oct 2008 23:10:50 GMT Gay Marriage Is Ruled Legal in Connecticut - New York Times Boston Globe Gay Marriage Is Ruled Legal in Connecticut New York Times - 5 hours ago In Hartford, Crystal Pretzman of Willimantic, Conn., celebrated the State Supreme Court's decision to legalize same-sex marriage. Video: Connecticut Court Allows Gay Marriage AssociatedPress Marriage ruling not the end of debate in Conn. The Associated Press Newsday - Washington Post - Reuters - NECN all 1,711 news articles Publ.Date : Sat, 11 Oct 2008 18:13:08 GMT World is united to tackle financial crisis, IMF says - MarketWatch BBC News World is united to tackle financial crisis, IMF says MarketWatch - 2 hours ago By Rex Nutting WASHINGTON (MarketWatch) -- Financial policymakers from 180 nations around the world are united in their resolve to tackle the financial crisis, Youssef Boutros-Ghali, head of the International Monetary Fund's policy committee, ... G7 nations face going cap in hand to China guardian.co.uk Finance officials comments at IMF meetings Reuters AFP - BBC News - Bloomberg - New York Times all 579 news articles Publ.Date : Sat, 11 Oct 2008 21:23:46 GMT Blogging Software RSS Parser

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