Is it fair that someone who has been declared bankrupt is able to go to the pub or the gym, buy gifts and enjoy meals out – or should they only be left with enough money to pay their household bills and meet other necessary expenses?
The answer probably depends where you sit on the spectrum of opinion regarding bankruptcy: “bring back debtors’ jails and workhouses”; “they’ve been through hell and deserve compassion”; – or somewhere between the two.
It’s a debate that will continue to rage following the introduction in the UK of rules which state that bankrupt individuals must hand over all their “disposable income” to their creditors for three years and can no longer keep any of it for themselves. Previously, many will have paid just…