DETI provide guidance on bankruptcy

The Department of Enterprise, Trade and Investment Insolvency Service has published three new leaflets for people going through the process of bankruptcy.

The latest figures available for the 12-month period ending March 31 show that almost 300 people were made bankrupt, with increasing numbers of people being made insolvent through consumer debts.

The guidance leaflets offer practical support to individuals and cover key questions often asked in relation to bankruptcy cases, including what happens to an individual’s personal assets such as their home and bank account and the administrative function of the Official Receiver’s Office.

Reg Nesbitt, Director of Insolvency, said: “Bankruptcy is often a long drawn out process and it can be very distressing for the individual concerned and their family. These leaflets provide straightforward answers to key questions.

“The Insolvency Service strongly encourages anyone facing bankruptcy proceedings to seek proper and early advice from a licensed an insolvency practitioner, Citizens Advice Bureau, solicitor, qualified accountant, reputable financial adviser or from any advice centre. We are aiming to ensure that these leaflets are available in all such locations.”

Siobhan Harding, Information and Policy Officer with the Citizens Advice Bureau (CAB), welcomed the publication of the new leaflets.

“These guides are a significant step in helping people understand the bankruptcy process and will provide a valuable reference for CAB advisors," she said.

"We are pleased that DETI is providing such information leaflets as there is a genuine need for clear and concise information on bankruptcy and other financial issues.”

The administration of the initial stage of all bankruptcy cases in Northern Ireland is one of the Insolvency Service's main responsibilities and this includes collecting and protecting any assets and investigating the causes of bankruptcy.

In the year 2000/01 there were 331 bankruptcy orders made in Northern Ireland. Of these, 310 were related to businesses and 21 were related to "consumer bankruptcy" such as credit card, loans, and other personal borrowing.

In the previous corresponding period there were 280 bankruptcy cases of which 229 were business related and 51 were consumer related.

(SP)