On 24 March 2020, the Australian Government made changes to the Bankruptcy law as part of the economic response to the Coronavirus. These temporary changes will be in place for six months from 25 March 2020.
The temporary changes to bankruptcy law are:
- Debt threshold for creditors to apply for a Bankruptcy Notice against a debtor will increase from $5,000 to $20,000.
- Timeframe for a debtor to respond to a Bankruptcy Notice before a creditor can commence bankruptcy proceedings will be increased from 21 days to up to six months.
- Temporary protection period procedure available for debtors to prevent recovery action by unsecured creditors will increase from 21 days to six months.
For more information about our recent legislative changes see: Coronavirus and changes to bankruptcy laws.
More information regarding the Governments economic response to the Coronavirus is available at https://www.australia.gov.au/.