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.’
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