The Department for Trade and Industry has stated their intention to clamp down on so-called 'serial bankrupts'. The DTI class these people generally businessmen (or women) declaring themselves bankrupt regularly to avoid paying their debts.
Currently, if someone is declared bankrupt then they generally need to wait for 3 years for it to be discharged. If the person is not a first-time bankrupt, the period could be longer.
But, the rules on bankruptcy are soon to change and the length of time before bankruptcy can be discharged will be just 12 months.
Our View
Businesspeople that set out to build up debts with no intention of paying them seriously impact on the economy and make life exceptionally hard for the more honest traders.
We believe that bringing the bankruptcy term down to a year is ridiculous and will only add fuel to those unscrupulous people wanting to make money and avoid debts. The DTI said that the new rules could mean serial bankrupts being barred from starting new business from between 2 and 15 years.
We believe this is still a joke.