The lax rules on bankruptcy could allow the credit crunch to spiral out of control as Britons take on greater debt risks
The relaxed bankruptcy regulations that are available in the UK could be taking their toll on the credit crunch, it was reported in The Times.
Current bankruptcy rules state that bankrupts can be discharged within a year, instead of the previous three, and apply for credit once more.
There have been calls from the National Institute of Economic and Social Research for international cooperation, in order to crack down on bankruptcy regulation.
However, Martin Weale, director of the institute, finds that the relaxed attitude towards bankruptcy will mean consumers will take excessive risks. 'This Government has done its best to make things worse' he said.
See full Article.
Posts
