Scandal of Insolvency Rogues
Atkinson, Dan, The Mail on Sunday (London, England)
Byline: DAN ATKINSON
TEN per cent of Britain's 1,100 insolvency practitioners are unfit to ply their trade and should be struck off, the new president of their professional association has told Financial Mail.
He warned that a cleanup of the profession was essential ahead of the Government's planned liberalisation of personal bankruptcy laws.
Keith Goodman, president of the Insolvency Practitioners Association, said rogue professionals working with dubious 'debt counsellors' were effectively defrauding creditors and the debtors.
He threatened that the IPA would use its disciplinary powers to throw out the bad apples and said of his presidential year: 'It is my highest priority.'
Goodman was speaking in the wake of public concern about some debt counsellors who charge indebted individuals thousands of pounds supposedly to negotiate an agreed repayment schedule with creditors.
In too many cases, the debtor is unable to meet the repayments and goes bankrupt anyway, owing both the original debt and money borrowed to pay the counsellor.
Goodman has no power over the counsellors, but he added: 'For the original arrangements to be approved by the court, you have to have an insolvency practitioner's say-so.
'I am concerned that too many are simply rubberstamping arrangements drawn up by the counsellors. …