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Bankruptcy

Volume 463: debated on Tuesday 17 July 2007

To ask the Secretary of State for Business, Enterprise and Regulatory Reform how many homes were sold in creditor bankruptcy cases in each year since the implementation of the Enterprise Act 2002. (149507)

The Insolvency Service does not hold this information as the realisation of bankrupts’ interest in properties is generally undertaken by an insolvency practitioner acting as trustee rather than the Official Receiver. However, as part of the evaluation of the Enterprise Act 2002, the Insolvency Service is collecting information on property realisations in a sample of all bankruptcy cases in England and Wales. This study is ongoing and the final results will be published in autumn 2007. Interim reports are available on the Insolvency Service website at:

www.insolvency.gsi.gov.uk

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what information services are available to individuals to help them decide which course of action to pursue when they have been made bankrupt. (149508)

Once an individual is made bankrupt in England and Wales they are subject to the bankruptcy provisions in the Insolvency Act 1986. All bankrupts are interviewed by a member of the Insolvency Service.

All bankrupts are given or sent a copy of the Insolvency Service “Guide to Bankruptcy”, which includes alternatives to bankruptcy.

The Insolvency Service produces a wide range of leaflets which are available in both paper form and on its website at www.insolvency.gov.uk. Those leaflets cover matters directly relating to the bankruptcy process, the consequences of bankruptcy and information on alternatives to bankruptcy.

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what responsibilities the Official Receiver has to make clear to individuals the different options open to them in bankruptcy; and if he will make a statement. (149509)

The responsibilities and duties of the Official Receiver are set out in the Insolvency Act 1986, which extends to England and Wales.

While there is no statutory duty on the Official Receiver to provide details of the different options available to bankrupts, all are given or sent the Insolvency Service “Guide to Bankruptcy”, which includes information on alternatives to bankruptcy. In addition, leaflets informing bankrupts of their options are available in paper form and on the Insolvency Service website:

www.insolvency.gov.uk/

The “Guide to Bankruptcy” covers the possibility of a fast track voluntary arrangement. A leaflet on FTVAs is also available in paper form or from the Insolvency Service website.