Covid-19 Debt Protections Ended 1 January 2021

The federal government announced temporary changes to bankruptcy laws in March 2020 to provide debt relief for individuals during the Covid-19 pandemic as follows:

1. The debt threshold for creditors to apply for a bankruptcy notice increased to $20,000 and;
2. The time period for a debtor to respond to a bankruptcy notice increased to six months.

These temporary measures have now ended.

From the 1^st of January 2021, the following applies:

1. The debt threshold for creditors to apply for a bankruptcy notice is now $10,000; and
2. The time period for a debtor to respond to a bankruptcy notice is now 21 days.

 

If you are experiencing financial distress, please contact Australian Bankruptcy Services to speak to one of our professional consultants today on 1800 462 767. Our toll-free hotline is open 24 hours a day, 7 days a week to assist you with any questions relating to bankruptcy and personal debt.