RE: S&P28 Apr 2024 18:19
PFC are trading in the UK not the United States,.....
Bankruptcy
When a business has failed, formal insolvency procedures may be the only option for recovery. The key difference between the US and the UK is control. Chapter 11 (administration, in the UK) leaves the directors in control of the business, and Chapter 7 (liquidation, in the UK) is also a light touch.
In the US, bankruptcy is regarded as a ‘relief’, and the main petitioner is usually the company or the individual itself. For individuals applying Chapter 7, not only can the bankrupt retain his residential property (in most cases), tools of trade, and a monthly income of up to $10,000 a month, they also wash off most of their creditors (excluding certain taxes) and can be out of bankruptcy within 3 months. That said, under US law, an individual can be refused bankruptcy relief if they took credit within 90 days of applying for bankruptcy, or if they have sufficient means to pay their creditors.
In the UK, bankruptcy lasts for 12 months, assuming that the individual cooperates fully with their trustee. During this time, the individual cannot be a director or involved in the formation or management of a company. The individual’s assets are thoroughly investigated and any realisable assets (including residential property) are sold for the benefit of the creditors. There is also a significant stigma attached to bankruptcy. It will remain on the individual’s credit file for 6 years, making it difficult to get credit in that period. Entering bankruptcy in the UK is very quick. If a statutory demand remains unpaid for 21 days, and the creditor is owed more than £750 (to be raised to £5,000 in October 2015), the creditor can petition for an individual’s bankruptcy
This is more likely......
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