Fortune Small Business has a column arguing that the new federal bankruptcy law will be bad for entrepreneurs. Why? They may be afraid to take certain risks.
(R)eader Johnathan A. wrote to say that he thinks the new bankruptcy law “will take away from the adventurous nature of small-business owners.” He’s already reevaluating his business plans: “As a small business owner, I will be less likely to take as many risks as I currently do. Expansion was a recent topic in my [business], but now I’m a little scared! If we blow it, I could lose my business, home, and personal savings.”
If a risky decision has a significant chance of bankruptcy, then it is not a prudent risk. So, if the new legislation keeps Johnathan A. from being “adventurous” that means that he will not take risks that may have an impact on other small business owners who are his creditors. Somebody has to pay for his aggressive decision making. Why not Johnathan A. himself?
Bankruptcy Federal
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