BANKRUPTCY

A group of lawyers preparing to mount a constitutional challenge to the bankruptcy laws are likely to base their arguments on the issue of proportionality, according to The Sunday Business Post.

“The lawyers have identified a potential constitutional flaw in the bankruptcy laws,” the report states. “It is understood their case will challenge the fact that the Bankruptcy Act does not allow courts discretion when making someone bankrupt and does not distinguish between the consequences, with the same sanctions for everyone.”

A senior lawyer, who is not named, says the present lack of proportionality is a clear violation of human rights and will be challenged on that basis.

“(At present) it doesn’t matter if someone is bankrupt because of commercial misfortune or because they squandered their money,” the source said.