Insolvency specialists concerned over UK bankruptcy online proposal.

(From Banking Newslink)

R3, the professional trade organisation of insolvency practitioners in the UK has expressed significant reservations over the proposal to allow people to declare themselves bankrupt online.

R3's reservations fall into two categories. The first is the possibility of malicious bankruptcy actions, such as someone applying for bankruptcy in another person's name. The second and more significant group is that bankruptcy on-line "could result in individuals applying for bankruptcy as a knee-jerk reaction to a bad day or under pressure from debt enforcers or bailiffs. Their bankruptcy could proceed even though they might not understand the …