Debtor bankruptcy applications go online only
Applications for bankruptcy brought on behalf of debtors will have to be made online from tomorrow, 30 September 2017.
Money advisers and insolvency practitioners working on behalf of debtors will no longer be able to submit bankruptcy applications on paper forms.
The Accountant in Bankruptcy (AiB) says that online submissions using its BASYS system are both less expensive to process and more accurate, allowing applications to be granted faster. BASYS was introduced in April 2015 under the Bankruptcy and Debt Advice (Scotland) Act 2015.
The process for creditor petitions, seeking to have someone else declared bankrupt, will remain unchanged.
Between 1 April 2016 and 31 January 2017, there were 2,932 applications for bankruptcy received by AiB. Of these, 2,632 (90%) were submitted electronically through BASYS. Of the 300 received on paper, 75 were returned immediately due to incomplete, insufficient or inaccurate information.
After 30 September, clerical applications will only be accepted by AiB in the event of system failure.
AiB chief executive Richard Dennis commented: “Over 90% of applications for bankruptcy are now received through BASYS, from a standing start in April 2015.
“Not only does the physical act of sending applications by post hold the process up, we tend to find these can have information missing which prevents the applications from proceeding. This impacts on debtors from gaining the debt relief they need, which is why we are requesting the industry across Scotland move to submit applications via BASYS only.
“BASYS prevents incomplete or inaccurate applications from proceeding. Using BASYS also means in the majority of cases bankruptcy can be awarded on the same day we receive the application."