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

Carillion CFO blew whistle over “sloppy accounting” months before collapse

Business Recovery Carillion CFO blew whistle over “sloppy accounting” months before collapse

2m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

2m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

3m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

3m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

3m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

3m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

4m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

4m Emma Smith, Managing Editor