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More to Lose: The Attributes of Involuntary Bankruptcy
Author(s) -
O'Brien Lucinda,
Anderson Malcolm,
Ramsay Ian,
Ali Paul
Publication year - 2019
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12237
Subject(s) - bankruptcy , creditor , business , meaning (existential) , action (physics) , actuarial science , insolvency , debt , law and economics , accounting , finance , economics , psychology , physics , quantum mechanics , psychotherapist
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.