A lot of people think bankruptcy means all of your debts are immediately forgiven and you start over with a clean slate. That isn't often the case. Not only are your assets often liquidated, some debts also aren't even dischargeable in bankruptcy.
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Early last month, the Senate announced an inquiry with terms of reference that cover the collapse of Dick Smith Electronics. There is a lot for senators to pore over in the float and failure of Dick Smith. From its float to its failure, the story of Dick Smith is ugly in its connotations for how business is done.
Yesterday, Dick Smith's receivers announced that all 363 stores across Australia and New Zealand will be closing down over the next eight weeks. It was a sad and ignoble end to one of Australia's most beloved tech retailers...Except it wasn't actually that beloved at all. As this graph from Roy Morgan Research points out, customer satisfaction with the franchise was significantly lower than any of its competitors and had been spiraling downward for years.
OK, this is odd. Under a change which was only announced last Friday night but which has already taken effect, it will cost you $120 to file for bankruptcy in Australia. Even stranger: you can charge that to your credit card, even though that card might well end up as one of your unpaid debts as a bankrupt.
