What You Need To Know: Changes to Bankruptcy Laws

On 24 March 2020, the Federal Government announced temporary changes to bankruptcy laws to provide support for individuals facing bankruptcy due to the economic impact of COVID-19. These changes were to last six months originally from 25 March 2020 and include:

● A minimum debt threshold increase from $5,000 to $20,000 before a creditor can apply for a Bankruptcy Notice;
● An extension from 21 days to up to six months for a debtor to respond to a Bankruptcy Notice; and
● A temporary debt protection period — individuals can apply for relief from creditors of up to six months from 21 days.

The Government has recently extended these temporary relief measures to 31 December 2020. This means that individuals facing financial hardship need to take action soon if they would like to take advantage of the temporary changes to the bankruptcy laws.

If you need some help getting back on track or would like some more information on how to improve your financial position then please contact us today. Australian Bankruptcy Services offer expert debt options and Bankruptcy advice on our toll-free hotline. We are open 24/7 so contact us at your own convenience on 1800 462 767.