BANKRUPTCY AND DEBTOR REHABILITATION: AN AUSTRALIAN EMPIRICAL STUDY

Abstract

Bankruptcy is widely regarded as a means of rehabilitation for debtors in severe financial hardship. To date, however, there have been few attempts to study its long term impact on individuals' finances, health, social relationships and general quality of life. The authors address this gap in the literature, by reporting the results of a major survey of current and former Australian bankrupts and another survey of financial counsellors and consumer solicitors. These surveys demonstrate that, for many Australian debtors, bankruptcy results in genuine improvements to financial stability, health, relationships and general wellbeing. At the same time, they suggest that the outcomes of bankruptcy..