The proposed federal government changes to insolvency that reduce the bankruptcy period from three years to 12 months need to be questioned.
It has been argued the shortened default period will have the desired impact on encouraging entrepreneurial activity and reducing the associated stigma of being a bankrupt.
While this may indeed allow a bankrupt a fresh start, it ignores the reality of what typically causes personal insolvency in Australia. Research indicates alternative reform measures are more effective tools in reducing the stigma of bankruptcy.
The proposal to shorten the bankruptcy period are amid a suite of insolvency law reforms proposed by the Productivity Commission, that were released in April at the same …
Read the full article at: http://theconversation.com/reducing-bankruptcy-to-12-months-ignores-realities-of-insolvency-60382