The NSW Small Business Commissioner Chris Lamont has recommended special provisions be introduced for small business to help them better understand the insolvency process and have greater confidence in it.
In a submission to a parliamentary inquiry into Australia’s insolvency laws, Commissioner Chris Lamont said businesses found the laws difficult to understand and were wary of the insolvency process.
“There is often a perception that as insolvency practitioners are paid through the restructuring process, they are incentivised to close businesses to pay creditors as quickly as possible,” Mr Lamont said.
“This perception, whether real or perceived, means some small businesses fail to act…