Many people think that bankruptcy is an easy option.
The package of measures I am announcing today will make bankruptcy tougher for bankrupts who do not cooperate with their trustees, encourage people to consider alternatives to bankruptcy, and address community perceptions that it is too easy to go bankrupt. These measures affect only personal bankruptcy. Many creditors feel that the possibility of being released from bankruptcy after six months does not reflect the serious nature of the decision to become bankrupt. Under amendments to the law to be introduced this year, bankrupts will no longer have a mechanism for early discharge. The amendments will also strengthen the provisions of the Act which allow trustees to lodge objections to discharge from Bankruptcy after the standard period.