An inquiry into insolvency practices was recently announced by Kate Carnell, Australian Small Business and Family Enterprise Ombudsman.
The concern is that current insolvency and voluntary administration processes are frequently ineffective for small businesses. They often have devastating results for the owners and their families.
Among other issues, the inquiry will consider the current level of transparency of processes and costs of administrators, receivers, liquidators and other advisers involved in the process. It will also contemplate how the insolvency of small business may lead to bankruptcy for the owners.