Madam, – It is incredible to think that the current bankruptcy legislation was totally updated in 1988, as some of the provisions are more appropriate to the Charles Dickens era of the 1800s – (Charles Dickens’s own father was imprisoned for non-payment of debt!). The current recession is threatening many entrepreneurs with bankruptcy, largely as a result of personal guarantees provided to the banks for property lending.
Under Irish bankruptcy they could be effectively prohibited from running a business for 12 years. An undischarged bankrupt may not act as a director of a company, and as companies are the main vehicle used for carrying out business in this country, such businessmen are effectively barred from establishing new businesses.
By definition, entrepreneurs are risk takers, and by taking risks they can help to generate substantial employment. Unfortunately, the extreme nature of the current recession is placing many of these entrepreneurs at risk of bankruptcy, which will ultimately have a knock-on effect on the generation of future employment.
In other countries, such as the United States, a business bankruptcy is almost viewed as a positive learning experience, and the businessman is rapidly discharged from bankruptcy, which means that he can quickly establish another business, and generate employment. The Government should act immediately to amend the legislation to shorten the discharge period from 12 years to one year, which is now the period in the United Kingdom. – Yours, etc,