Softer bankruptcy rules threaten financial firms

A relaxation of the legislation on bankruptcy could leave banks, credit card companies, lenders and financial services firms with hundreds of thousands of pounds of unpaid debt, says a London law firm. Insolvency specialists at city law firm Lawrence Graham say the proposed Enterprise Act 2002 makes the threat of bankruptcy less inhibiting because the bankrupt is able to walk away from those debts after three years. Nick Pike, partner at Lawrence Graham, says the more lenient approach to bankruptcy allows individuals to be back in business and become the director of a company agai...