It would be an exaggeration to claim that Bankruptcy is more popular than ever. One only has to consider the pain that bankrupt persons must endure in terms of stigma, loss of credit facilities and loss of property, including family homes. Nevertheless, judging by the latest list of bankruptcy orders, it seems that in Northern Ireland almost every occupation, trade & profession has been adversely affected by the recession with the possible exception of the candlestick maker. Students, unemployed persons and those who are retired have not escaped either.
The law requires that all bankruptcy orders be published so that creditors in particular can make their claims against the estates of bankrupt persons. Anybody in financial trouble can petition for their own bankruptcy but the majority of petitions are instigated by creditors who have given up chasing payment of debts by ordinary means. In Northern Ireland, creditors account for about 60% of petitioners with debtors petitioning for their own bankruptcy in about 40% of cases.
Last week’s Belfast Telegraph carried a list of thirty nine persons against whom bankruptcy orders had been made in the previous week with a few exceptions. The list stated the occupation of each person, where known. These included recruitment consultant, security provider, shopkeeper, electrical contractor, builder, fast food outlet owner, cook, restaurateur, day nursery proprietor, haulier, businessman, fruiterer, plasterer, joiner, accountant, sales representative, taxi driver, civil servant, day care worker, medical secretary, food & beverage manager, painter & decorator, administration officer, baker, driver, haulage contractor and others. In the case of some unemployed or retired persons the former occupation was not provided.
Bankruptcy in Northern Ireland (and indeed in England and Wales for that matter) is much more attractive than it used to be, although it is far from a desirable place to be, for most people. Discharge usually occurs in one year. A bankrupt need not lose his or her home although with the recent change in policy by the office of the Official Receiver (OR), it may take three years after the bankruptcy order before the property is dealt with and until the bankrupt can determine if they can make a deal with the OR to retain the property. Contrary to what many people may think, there is nothing to stop a bankrupt person working to earn a living – other than the shortage of jobs in the economy. A bankrupt is usually allowed to retain their household goods and contents and even their car provided it is not inordinately expensive and it is needed for work. Tools of the trade are also exempt.
What a contrast with the Republic of Ireland where the draconian legislation in that jurisdiction is a barrier to insolvent citizens addressing their debts. It is remarkable that no citizen has yet taken the Irish government to the European Court of Human Rights for their failure to enact legislation in this area. Meanwhile, citizens of Northern Ireland can enjoy, with their benign bankruptcy legislation, at least the perception of debt forgiveness, when contrasted with their southern cousins.