BusinessBusiness RecoveryPublic stigma for bankrupts remains

Public stigma for bankrupts remains

Consumers do not believe the stigma of being bankrupt should be removed straight away, despite recent government attempts to create a friendlier rescue culture, a KPMG survey has revealed.

Link: Fears surface over personal insolvency surge

The survey, conducted by YouGov for KPMG on almost 2,000 consumers over 18, showed 70% of people believed bankrupts should have to wait at least three years before they are allowed to run a company again.

These findings are contrary to the ‘rescue culture’ the government wants to promote with the Enterprise Act that comes into force this summer. The new act reduces the penalty for ‘honest’ bankrupts from three years to one.

Although the pollsters agree dishonest bankrupts should be banned from running a business for up to 15 years, 9% want an even higher penalty which would see reckless directors losing their rights to run a business for life.

Steve Treharne, head of corporate recovery at KPMG said: ‘The survey reveals some surprising, and in some ways old-fashioned attitudes to bankruptcy which are at odds with the government’s proposed new bankruptcy regime.

‘I see a real practical difficulty in that those who have suffered financial misfortune often find it difficult or even impossible to get credit. This clearly impacts adversely on their ability to get back on their feet.

‘It is perhaps telling that only a minority of those questioned thought that financial institutions should be compelled to lend money to former bankrupts to enable them to get back on their feet and make a fresh start.

‘The survey results clearly show that people are not yet ready to accept a regime where credit is easily available to former bankrupts or where there is any obligation on the providers of finance to help former bankrupts.’

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

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

3m 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

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

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

4m 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

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

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

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor