The discussion paper notes that legislation which would have reduced the default period for bankruptcy from three years to one year the Bankruptcy Amendment (Enterprise Incentives Bill lapsed before the 2019 election over concerns about it being available to those “for whom a concession is not a desirable or justifiable outcome”.
The paper says consideration is being given to “criteria that would exclude a bankrupt from the default period of one year and strengthened offence provisions”.
“The abuse of the personal insolvency system to avoid paying debts is a concern that is frequently raised by stakeholders.
‘Illegal phoenix activity’
“While illegal phoenix activity is generally associated with corporate insolvency, analogous behavi…
Read the full article at: https://www.afr.com/companies/professional-services/bankruptcy-review-targets-untrustworthy-advisers-20210113-p56tsr
