Skepticism spurred as innovation statement foments debate

Condon Group guests enjoying rooftop hospitality. Photo: Condon Associates Group

THE changes to insolvency mooted in the Federal Government's Innovation Statement provide an ideal opportunity for insolvency practitioners to host seminars. There the invited can hear the pros and cons debated then opine at length during the drink and nibbles that invariably follow.

Last week Schon Condon, James McPherson and the rest of the Condon Associates team were at it, packing their conference room on Level 6, 87 Marsden Street Parramatta.

Guest speaker Stephen Mullette focussed on the proposal to reduce the default bankruptcy period from 36 months to 12. The Matthews Folbigg principal outlined how the idea has had previous incarnations and expressed ambivalence about its benefits.

Could a bankrupt acquire an informed appreciation of where they might have gone wrong in such a short time? Mullette wasn't sure. Early discharge would not restore their credit rating any quicker. And a shorter term might incite high income earners, precipitating a wave of debtor's petitions and diminishing the number of Personal Insolvency Agreements (PIAs) entered into.