More to Lose: The Attributes of Involuntary Bankruptcy

Economic Papers, Vol. 38, No. 1, pp. 15-26, 2019

15 Pages Posted: 2 Apr 2019

See all articles by Lucinda O'Brien

Lucinda O'Brien

Melbourne Law School

Malcolm Edward Anderson

University of Melbourne - Faculty of Education; Australian Institute of Archaeology

Ian Ramsay

Melbourne Law School - University of Melbourne

Paul Ali

University of Melbourne - Law School

Date Written: November 30, 2018

Abstract

While the majority of those who declare bankruptcy do so voluntarily, a significant proportion are forced into bankruptcy as a result of legal action. This paper interrogates data obtained from the Australian Financial Security Authority to explore the attributes of debtors who go bankrupt involuntarily. Based on this analysis, the authors hypothesise that people who go bankrupt involuntarily are those who have more to lose by going bankrupt – such as a family home, a business venture or a managerial or professional occupation – meaning that they are more likely to resist bankruptcy until they are forced into it by their creditors.

Keywords: involuntary bankruptcy; attributes of bankrupts; business bankruptcy; debtors

Suggested Citation

O'Brien, Lucinda and Anderson, Malcolm Edward and Ramsay, Ian and Ali, Paul, More to Lose: The Attributes of Involuntary Bankruptcy (November 30, 2018). Economic Papers, Vol. 38, No. 1, pp. 15-26, 2019. Available at SSRN: https://ssrn.com/abstract=3349521

Lucinda O'Brien

Melbourne Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Malcolm Edward Anderson

University of Melbourne - Faculty of Education ( email )

Alice Hoy Building
Victoria 3010
Australia

Australian Institute of Archaeology ( email )

Melbourne, Victoria 3010
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Paul Ali

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 1088 (Phone)
+61 3 8344 5285 (Fax)

HOME PAGE: http://www.law.unimelb.edu.au

Register to save articles to
your library

Register

Paper statistics

Downloads
23
Abstract Views
143
PlumX Metrics