When individuals find themselves in difficult personal financial circumstances, they fear bankruptcy. What seems not to be understood is that bankruptcy is intended as a relief, not a punishment, for people in these circumstances. At the time when a person declares their bankruptcy, the whole of their indebtedness is "wiped out". What a relief!

It only lasts for three years, and the restrictions are few. Generally speaking, the impact is Indiscernible.

DEEDS OF COMPANY ARRANGEMENT & ARRANGEMENTS UNDER THE BANKRUPTCY ACT

There are options available to individuals in difficult financial circumstances and corporations in the same boat. It is open to an individual and a company to propose (in a formal way) an arrangement with their creditors and, if accepted by the requisite majority, the company and the individual can proceed on under that arrangement (say payment by instalments).

Payment by instalments, coupled with a reduction to, say 50 cents to the dollar, without the need for the finality of liquidation or bankruptcy.