UK Business Minister, Jo Swinson has announced a new process in relation to processing complaints about Insolvency Practitioners. The new route will make any issues much easier to deal with if a person has a valid issue or grievance in relation to an IP. Previously it was much harder to complain if a person felt that an issue was not being dealt with correctly or efficiently. Prior to the new gateway for complaints, an individual would have to work out which governing body the IP belonged to-a process that in many cases was not made easy by the IP or Company involved. Bearing in mind there could be eight different authorising bodies the process was not clear or user friendly to the average person who may have been experiencing difficulty with their IP. The new process is also expected to result in massive savings which can be passed onto the creditors; a figure of £30 million pounds could be quite possible.
A new Debt Management Plan (DMP) Protocol has been launched by Consumer Affairs Minister, Jo Swinson. This new protocol is designed to make sure that consumers have the correct advice and all charges are clearly explained when they are considering debt management plans and more importantly the providers of these services. At the moment commercial debt management companies charge the customer a fee to administer their debt management plans. The customer normally makes one payment which the debt management company then splits between the individual creditors. At this point an administration fee is then taken by the debt management company to cover their services. The new protocol is designed to ensure that the consumer is made aware of the “free of charge”
A joint investigation between UK and New Zealand authorities has recovered hidden assets worth over £1.5 million pounds from a reclusive millionaire that had been made bankrupt in 2009. Retired psychiatrist Alan Geraint Simpson (68) was living in Hamilton, New Zealand but had been declared bankrupt in England due to outstanding debts to his creditors. The UK Court ruled that he owed £242,920 to his creditors including interest and costs. These debts were mainly attributed to being a “Name” at Lloyds of London; an insurance institution that spread its profits (and risks) to individuals that invested into this business. When Lloyds of London faced massive losses for settlements in US Courts these losses were in turn passed onto the “Names” who were financially liable for these losses.
A former bankrupt from Essex has been sentenced to eight months in prison for failing to disclose assets and bank accounts in his bankruptcy. Simon Peter Eagle (54) from Harlow in Essex was made bankrupt in 2003 but was recently sentenced at Chelmsford Crown Court after a joint investigation by the Insolvency Service and the Department for Business Innovation and Skills. The sentence was handed down to Mr Eagle for failing to disclose two Lloyds Bank accounts and also for not disclosing an interest in a
Proposals to introduce a better application system for bankruptcy and company windings up, easing burdens on business whilst safeguarding debtors, were announced yesterday by Business Minister Edward Davey. The Government wants to see a more efficient service for all concerned, saving time and money when businesses and consumers get into trouble, and delivering better outcomes for both creditors and debtors. The reforms have the potential to produce significant savings for taxpayers, running to millions of pounds by moving away from a system that is wholly court based.