BANKRUPTCY

 

BANKRUPTCY

bankruptcy-blocks.png

What’s changed?

Changes take effect from
25 March 2020 and expire on 25 September 2020.

This page last updated on 27/04/20

  • The minimum amount to apply for a bankruptcy notice (forced bankruptcy) has been increased from $5,000 to $20,000.

  • The time for a debtor to respond to a bankruptcy notice has been extended from 21 days to six months.

  • Temporary Debt Protection (the re-named Declaration of Intent process) will be extended from 21 days to six months.

  • COVID-19 supplement payments may be claimable in bankruptcy by the Trustee if paid before bankruptcy and they remain in a person’s account after becoming bankrupt.

  • Economic support payments are not claimable at any time. 

BANKRUPTCY

bankruptcy-blocks.png

What’s changed?

Changes take effect from
25 March 2020 and expire on 25 September 2020.

This page last updated on 27/04/20

  • The minimum amount to apply for a bankruptcy notice (forced bankruptcy) has been increased from $5,000 to $20,000.

  • The time for a debtor to respond to a bankruptcy notice has been extended from 21 days to six months.

  • Temporary Debt Protection (the re-named Declaration of Intent process) will be extended from 21 days to six months.

  • COVID-19 supplement payments may be claimable in bankruptcy by the Trustee if paid before bankruptcy and they remain in a person’s account after becoming bankrupt.

  • Economic support payments are not claimable at any time. 

BANKRUPTCY

bankruptcy-blocks.png

What’s changed?

From 25 March 2020 to 31 December 2020 there were a number of temporary measures in place to protect people from being forced into bankruptcy.  These measures ended 1 January 2021.

This page last updated on 20/01/2021

  • The bankruptcy threshold had been temporarily lifted from $5,000 to $20,000 on 24 March 2020.  However, a new permanent threshold of $10,000 came into effect 1 January 2021.  This means, from 1 January 2021, a debtor cannot be issued with a Bankruptcy Notice or forced into bankruptcy by their creditors if the debt owed is less than $10,000.

  • If you are issued with a Bankruptcy Notice (for a debt of more than $10,000) on or after 1 January 2021 then the time you have to respond to the notice has reverted to 21 days.

  • If you apply for Temporary Debt Protection on or after 1 January 2021 the protection period has reverted to 21 days.

 

TEMPORARY DEBT PROTECTION

temporary-debt-protection-dp.jpg

What’s changed?

COVID 19 changes:  From 25 March 2020 to 31 December 2020 there were a number of temporary measures in place including an increase to a term of 6 months for Temporary Debt Protections.  These measures ended on 1 January 2021.

This page last updated on 20/01/2021

Originally scheduled to end late September, the Government extended the 6 month term for Temporary Debt Protections (TDP) until 31 December 2020.  From 1 January 2021 a debtor can apply for a TDP but the protection period they will be given has reverted to 21 days.