More to Lose: The Attributes of Involuntary Bankruptcy
Economic Papers, Vol. 38, No. 1, pp. 15-26, 2019
15 Pages Posted: 2 Apr 2019
Date Written: November 30, 2018
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: Suggested Citation