| The government is launching two
consultations on current bankruptcy rules introduced
under the Enterprise Act because of a massive rise
in people walking away from their debts.
The separate consultations will look at whether
the rules need to be changed; Leeds based Credit
reference agency MasterWatch report.
One consultation is being undertaken by the Department
for Constitutional Affairs looking at people who
use bankruptcy to escape their obligations, while
the Insolvency Service, part of the DTI, is looking
closely at individuals' voluntary arrangements.
Rules under the Enterprise Act mean bankrupts
can be rehabilitated in only a year, and has taken
the stigma out of going bust.
A record 11,200 people filed for bankruptcy between
April and June in England and Wales, a 33% increase
on last year.
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