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> In most of Europe there is no concept of personal bankruptcy That's wrong. It only takes longer in most european countries. For example in Germany it takes 6
by allerratio 14y ago
> In most of Europe there is no concept of personal bankruptcy
That's wrong. It only takes longer in most european countries. For example in Germany it takes 6 years.
- Xylakant 14y agoI'm not certain about it but I think debts from criminal offenses are not cleared on personal bankruptcy. Sozialversicherungsbetrug (not paying your employees social security) and tax evasion are criminal offenses for the manager of a company so they'd not be cleared. However, if you start up a company with employees you'd want a limited liability company of some form anyways, so personal liability only extends to criminal negligence or criminal offenses. It's still easy enough to get burned and indebted as manager though.
- rmc 14y agoI'm not certain about it but I think debts from criminal offenses are not cleared on personal bankruptcy Not all debts can be cleared by bankruptcy in the USA AFAIK. I don't think you can clear college tutition fees with bankrupcty.
- Xylakant 14y agoYes, I heard that. The tricky part is that the debts that a failing startup is most likely to rack up are the ones that later translate into criminal charges and the manager is personally liable for that.
- rmc 14y agoAgreed. Ireland is 7 years I think (though it's being reduced). UK might be 1 year. To think of it from another perspective, harder bankruptcies mean that your debtors are not able to escape from their debts as easy. Surely that's a good thing for a business?