New Bankruptcy Legislation Undercuts Important Safety Net for Entrepreneurs

New bankruptcy legislation failed to account for hundreds of thousands of entrepreneurs, independent contractors and self employed individuals who traditionally have turned to bankruptcy relief as an important safety net in their effort to recover from a failed undertaking, according to a new research study.

In fact, large numbers of entrepreneurs use the bankruptcy system, despite official government statistics that say their presence in bankruptcy has declined sharply. A result of the faulty data is a skewed picture of the measurement and strength of the nation’s small business economy. The new legislation, according to some experts on entrepreneurship, could also serve to deter would-be entrepreneurs from embarking on risky new business formation.

The study was conducted by professors at Harvard Law School and the University of Nevada, Las Vegas, with support from the Ewing Marion Kauffman Foundation.

From New Bankruptcy Legislation Undercuts Important Safety Net for Entrepreneurs, says New Study Funded by Kauffman Foundation

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