The Department of Business Innovation and Skills (BIS) is proposing to reform the process by which debtors and creditors petition for bankruptcy and winding up orders. According to the BIS' November 2011 consultation paper Reform of the Process to Apply for Bankruptcy and Compulsory Winding Up, the motivation for change is to streamline the routes for bankruptcy and insolvency, which in everyday language can be translated into cost cutting. The main proposal is the removal of the courts from the majority of insolvency proceedings. Courts are already bursting at the seams and many bankruptcy and winding up petitions go undefended. Why involve the courts in what is a rubber-stamping exercise?
展开▼
