Bankruptcy: flaw in the law? Joseph Mason column

Bankruptcy: flaw in the law?

Bankruptcy is usually touted as a form of relief from debt. Following bankruptcy, it is assumed the entity concerned will be in a better position to generate sufficient cashflow to be operationally viable. Recent discussions of changing bankruptcy laws for small businesses and states take a simplistic view that bankruptcy provides a straightforward solution to many financial problems. In reality, US firms, courts and lawmakers continue to struggle with incentives that result in significant