BusinessBusiness RecoveryEnterprise act will ‘de-stigmatise’ bankruptcy

Enterprise act will 'de-stigmatise' bankruptcy

The chief executive of one of the UK's largest credit card issuers has slammed changes to personal bankruptcy rules due to come into force this April.

Link: New law ‘disenfranchises’ creditors

General Charles Krulak, chief executive of MBNA Europe, warned that measures due to be implemented under the Enterprise Act would de-stigmatise bankruptcy and encourage people to escape their debts.

From April, the current three-year wait to be discharged from bankruptcy will be reduced to 12 months or less.

Krulak told the Financial Times Britain could see the kind of leap in bankruptcy experienced in America when it relaxed its laws.

‘I am telling you right now there will be unintended consequences,’ he said. ‘It is going to de-stigmatise totally the concept of bankruptcy.’

Related Articles

EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

3m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

4m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

6m Alia Shoaib, Reporter
Manor Racing Formula One team company enters administration

Business Recovery Manor Racing Formula One team company enters administration

9m Stephanie Wix, Writer
Oil and gas sector insolvencies hit “new high”

Accounting Firms Oil and gas sector insolvencies hit “new high”

9m Stephanie Wix, Writer
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

7m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

8m Emma Smith, Managing Editor
Business confidence drops to second lowest level since 2011

Business Recovery Business confidence drops to second lowest level since 2011

9m Stephanie Wix, Writer