4 ms·

> In the UK to go bankrupt is to be painted with indelible red shame dye Is it? Do people generally know when someone (personally, or in this case, since we're

• heavenlyblue 2y ago
  People don't know but bankrupcy bans you from openning another company for about 10 years I believe.
  • switch007 2y ago
    1 year
• xnorswap 2y ago
  It comes with an inability to do lots of things for 6 (I think?) years, including things like not having an overdraft and more importantly to this conversation, prevents being a director of a company.
  • sofixa 2y ago
    Isn't this only for personal bankruptcy? If you have a limited company and it goes bankrupt, it's it that's bankrupt, not the owners. Or is the UK very weird in that regard and I'm reading gov.uk wrong?
    • davedx 2y ago
      No, you're not reading it wrong, there are a lot of extremely negative comments on this thread that just aren't accurate. Limited companies are just like LLC's. There's so much nonsense being posted here
    • PeterisP 2y ago
      At least in other places in Europe, and I assume also in UK, it's somewhat common for any sources of financing to new companies (i.e. without a proven steady cash flow), both banks and other investors, to explicitly require personal guarantees from the owner - so while technically you have a limited liability company, the lender will lend you money only if you accept full liability and put your house, car and other assets on the line. As the original post states, "investors spend too much time trying to mitigate downside risk with all sorts of protective provisions". So a company bankruptcy may result in a personal bankruptcy as well.
  • dukeyukey 2y ago
    Where are you getting this from? You can definitely be the director of a company after bankruptcy (assuming you didn't try to deception or scams of course), and stuff like an overdraft or loans are up to the lending bank/company. EDIT: Unless you mean personal bankruptcy, which you probably don't, but while you're under the bankruptcy order (~1 year) you can't become a company director.
• yobbo 2y ago
  Your future employer, friends and family will know. People in general don't keep track of other random people.
  • oblio 2y ago
    > Your future employer How will they know and why would they care, if we're talking about regular job postings?
    • poooogles 2y ago
      You'd be ruled out of many FCA (financial conduct authority) regulated jobs for at minimum 6 years after.
      • throwaway2037 2y ago
        Even at an investment bank in London, the percentage of FCA regulated jobs that would exclude you for recent personal bankruptcy would be less than 1%. And the reason for personal bankruptcy would be important. Did you go bankrupt for gambling losses or unpaid medical bills? These would receive very different treatment by the FCA when considering your application.
    • yobbo 2y ago
      You can choose to have a gap or failure on your résumé. Either makes you unemployable at the types of banks or consultancies considered "safe" in the article, unless you have some sort of remarkable pedigree or network. That type of résumé is accepted at less prestigious consultancies/staffing agencies, but the pay is on a lower level.
      • davedx 2y ago
        > You can choose to have a gap or failure on your résumé. Either makes you unemployable at the types of banks or consultancies considered "safe" in the article, unless you have some sort of remarkable pedigree or network. This is all anecdotal but... You won't be unemployable because you ran a company and it failed. You may however be because you had "founder responsibilities" and then try to fall back into engineering roles after 5 years of running a startup.
• ggm 2y ago
  perhaps I reflect views of times past. C.P. Snow's "strangers and brothers" series of books starts with Lewis (the hero) as a child, bearing the burdens of his fathers bankruptcy and the implicit expectation he will work life-long to repay the debt, which he rejects. Shock! Horror! -Thats a 1940-1970 series. It's a common trope in fiction: to be bankrupt, to fail in a business endeavour is to acquire shame and disgrace in society. If the 40s is too far back, John Le Carré has used it several times as a back plot driver for characters across his books, no doubt reflecting his own experiences as a child of a fraudster and serial bankcrupt. He was writing actively into the modern era. Obviously I'm not saying there is a literal colourfast red skin dye reserved for failed businessmen: Societal expectation is a stupid social construct, not law.