Following a report and recommendation from the Senate Legal and Constitutional Affairs Committee, the bankruptcy period is now set to be reduced from 3 years to 1 year.
Tag: creditor risk
Reducing the Bankruptcy Period
The Australian Government has introduced a Bill to reduce the bankruptcy period from 3 years to 1 year, furthering their efforts under the National Innovation and Science Agenda. The Government considers a reduction in the bankruptcy period is necessary to drive a cultural shift in our perception of business failure and to promote entrepreneurial activity. However, the policy raises significant concerns in relation to increased creditor risk.