Enterprise Act 2002
WHY CHANGE THE LEGISLATION
Under the old rules the bankrupt would have been discharged after 2 years if unsecured debts were below £20,000, and 3 years if over 'that amount'. The restrictions placed on the individual included making it a criminal offence for an undischarged bankrupt to;
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Obtain credit of £250 or more, either alone or with another person; this also covers obtaining credit by a statement or conduct.
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Managing a Limited company directly or indirectly, or acting as a company director without the leave of the Court.
- Many professionals believed that the old legislation was too draconian and did not reflect on today’s society and needs. For example an individual that has been made redundant from his/her occupation and is unable to secure full time employment thereby preventing him/her for servicing their unsecured debts are, in effect, treated exactly the same as an individual that has been culpable and reckless in their borrowing and who had set out with no intention of ever paying his/her creditors.
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