Insolvency - New Proposals for 'Honest' Bankrupts

These are proposals to change the existing laws on bankruptcy which currently mean that, for most bankrupts, they have to wait for 3 years before being discharged and therefore able to return to conducting normal business operations on the same basis as other traders (special rules apply to 'small' bankruptcies).

The new proposals are to introduce American style rules, which will allow 'honest' bankrupts to be discharged from bankruptcy within 6 months. This means they could quickly start up business again and have access to bank accounts and obtain credit.

These proposals are aimed at reducing the bankruptcy period for people whose businesses have failed because of bad luck or some innocent error of judgement.