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bankruptcy
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what are the positive and negative effects of the entreprise Act 2002 on bakruptcy?Has it improved or worsened sole traders' second chances at re-building their businesses after being declared bankrupt?
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There isn't a small answer really. As bankruptcy is now usually 12 months it means the debtor can start to trade again faster than before, it is very difficult to trade whilst bankrupt though as now most banks are reluctant to even give a bank account. Stock gets taken from you and you can't employ anyone so trading in bankruptcy is limited to people such as electricians, plumbers, unqualified accountants etc.
It's easy for me to say but anyone that goes bankrupt and then continues as before needs to really identify what happened, why it went wrong, before they start to trade again, not just for themselves but for creditors as well.
Overall though I think the Act has made it a bit easier for debtors in business to have a second chance.
It's easy for me to say but anyone that goes bankrupt and then continues as before needs to really identify what happened, why it went wrong, before they start to trade again, not just for themselves but for creditors as well.
Overall though I think the Act has made it a bit easier for debtors in business to have a second chance.
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