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Comment by hdivider | Hacker News Reader

Interesting article, especially the part about the maximum time it takes for bankruptees to be freed from debt (makes you feel sorry for entrepreneurs in France who have to go into debt to start their business).

I think a lot of this stuff is due to the attitude of the general population towards entrepreneurs. If the only question that matters to people is "Have you made any revenue yet?" there's probably not much hope for Europe ever catching up with the US in terms of new fast-growing tech businesses.

(I'm hoping the UK is something of an exception, but I'm not really sure. Lots of people here are still very sceptical or pessimistic about new tech companies, especially very small, innovative ones.)

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I'm not sure that bankruptcy is not an exception rather than rule. The cases I have seen in the EU where 'done' after the court case. Which didn't take long at all. But it is true that it is a stigma; to US entrepreneurs if you tell you have a bankruptcy it means you tried, in the EU it means you failed.

I don't know about the UK or the US, but in France, Bankruptcy don't always mean paying your company's debts. Small business often start as "limited responsability companies", where you can only loss your capital.

I think that's what the economist refers to as well; otherwise the owners will have to pay the debt or personally go bankrupt (and that IS a bad thing). I think the economist refers to limited liability companies which are liable to the starting capital and the bad thing is, they say, that even those, where you know the outcome, are taking so long.

This is because every party involved who wants money from that bankrupt company stands to gain if they can show that there was malpractice going on. If this can be shown, the shareholders (if they have more than 4.9%) become liable personally and then there is something to get (while usually, after the taxes visited the carcass, there is nothing left). This is why sometimes it takes a long time to resolve.

We have limited liability in the UK however a small business won't get a loan from a bank without a director personally guaranteeing it. The reality is a failing business can often mean the founders bankruptcy.

Yes, that probably means you are done, the rest of your life. It takes away your spirit to try again and the bank (at least here) forces you to get a job to be able to regularly pay back the agreed amount. You are in prison without the bars when that happens.

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