Bill: Pending P.B. 03-13 | Bankruptcy Act

[Aya]

A
BILL
TO
Enable Bankruptcy Protections for Enterprising Individuals​

1 - Short Title and Enactment

1. This Act may be cited as the ‘Bankruptcy Act'.
2. This Act may be numbered as P.B. 03-13.
3. This Act shall be enacted immediately upon its signage.
4. This Act was authored by Ayatha
5. This Act has been co-sponsored by Taelor

2 - Reasons

1. There are no forms of bankruptcy protection currently implemented within Alexandria, and that is a critical failure of current governance as it enables citizens to fall into debt traps they have no hope of climbing out of. This should be ameliorated immediately.
2. Outlining bankruptcy protection now prior to any major corporations going bust is incredibly important, as when it eventually does occur we will require an outline of what is to be done; most importantly in a simple and accessible format.

3 - Method of Enactment

1. In the Ministry of Trade and Finance, an Office of Bankruptcies will be formed to accept “Admissions of Insolvency” from private individuals, corporations and other legal entities and to facilitate the following process once said AoI’s are logged and confirmed:
   1. An in depth audit of the legal entity’s financials to determine current assets and creditors.
   2. Acquiring a Magistrate’s approval to move forward with the liquidation of the legal entities assets and the dissolution of the company.
   3. The seizure of 100% (minus the starting balance of £1200) of the bankrupt legal entity's assets via court order to be sold directly to the Ministry of Development at it’s initial auction price in the case of property, and put directly onto the market in flash auctions starting at £0 in the case of material goods.
   4. The proceeds of the property sales and material sales will then be tallied up and distributed to creditors based upon the proportion of how much credit they’d given to the company. E.g. If a Banking Corporation represents 50% of the credit Bankrupt Corporation has at the time of bankruptcy, they will receive 50% of the bankruptcy payout.
      1. In cases of a joint stock corporation going defunct, shareholders will be considered creditors with their credit given to the company represented by the par valuation of their shares summed up.
      2. Any excess debt incapable of being paid off via the sale of assets is annulled by the word of this law as the cost of doing business.