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Executive Summary Section 1 outlines the purpose and scope of this consultation document whilst Section 2 provides the background to it and details the upward trend in the number personal insolvencies. It also contains the results of a survey by Official Receivers regarding the business failures with which they dealt in the months of January and February 1999. Section 3 gives a brief history of the development of the law of personal insolvency in England and Wales, including the work of the Cork Committee and some of the major changes made as a consequence in the Insolvency Act, 1986. Section 4 provides some international comparisons in the area of personal insolvency law and the current scheme of the law relating to personal bankruptcy in England and Wales is outlined in Section 5. The "one size fits all" approach to bankruptcies is considered at Section 6 and the question of being able to distinguish between bankrupts on the basis of an assessment of their pre-bankruptcy conduct is considered . Against the background of maintaining the position of creditors Section 7 canvasses changes to the current law relating to bankruptcies, including an earlier discharge period for the majority of bankrupts, insurance of the position of creditors, post bankruptcy individual voluntary arrangements involving Official Receivers, toughening action taken against dishonest and irresponsible debtors and the provision of financial counselling. The following questions are posed: · Do you think these proposals would enable a distinction to be made between honest, responsible bankrupts and those who are guilty of financial misconduct? · Do you think that 6 months (or possibly shorter) is an appropriate period for a bankruptcy? If not please say what period you consider would be appropriate and why? · What is your view of the proposal that Official Receivers should be able to supervise post-bankruptcy Individual Voluntary Arrangements? · To what extent do you think that the proposed bankruptcy restriction order would offer protection to the public against the actions of dishonest or irresponsible bankrupts? · Is there another way in which the public might be better protected from such individuals? · Do you have a view on the suggestion that financial or management counselling should be available to bankrupts? Should it be compulsory? As a way of encouraging enterprise and assisting those who have behaved responsibly but failed, Section 8 proposes an exemption of a proportion of any equity in the family home if the bankrupt can show that an equivalent sum has been introduced as capital into a business. It asks: · To what extent do you think these objectives would be achieved by what is proposed? Section 9 discusses the way in which the law operates to reinforce the stigma which attaches to financial failure and bankruptcy and asks: · Should restrictions, prohibitions or disqualifications imposed on an individual automatically as a result of bankruptcy be abolished? · Should discrimination against individuals solely on the ground of their bankruptcy be made illegal? [Foreword] [Responses To] [Executive Summary] [Section 1] [Section 2] [Section 3] [Section 4] [Section 5] [Section 6] [Section 7] [Section 8] [Section 9] [Annex A] [Annex B] [Glossary of Terms] |
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