However, many of these businesses could remain viable concerns if they had more flexibility to restructure their affairs.
It is with this objective of keeping more businesses in business and people in jobs that the Morrison government is embarking on the most significant reforms of insolvency law in almost 30 years.
Incorporated businesses with liabilities of less than $1 million will be able to keep trading.
Adopting key aspects of the US Chapter 11 bankruptcy process, the government will be introducing a single, simpler, faster, more cost-effective insolvency process for small business.
It will see our system move from a rigid, one-size-fits-all creditor in possession model to a more flexible debtor in possession model.
Read the full article at: https://www.afr.com/policy/economy/fighting-chance-for-small-business-20200923-p55yi8