Proposed changes to Australia’s bankruptcy and insolvency laws will push Australians to declare bankruptcy, which means “the federal government is essentially incentivising people into insolvency”, according to the Personal Insolvency Professionals Association (PIPA).
The new law would reduce the current default bankruptcy period from three years to 12 months.
PIPA director, Ben Paris, said this meant that the number of bankruptcies would skyrocket under the new regulations.
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“However, Australia is experiencing a problem with phoenixing’, where businesses deliberately don’t pay their debts and then file for bankruptcy, and these law changes would encourage this practice further,” Paris said.
“Give…
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