By Jennifer Dickfos, Griffith University and Catherine Brown, Griffith University
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.
Proposed reforms
The proposal to shorten the bankruptc…
Read the full article at: http://www.smartcompany.com.au/finance/70546-why-reducing-bankruptcy-to-12-months-ignores-realities-of-insolvency/