Bankruptcy Threshold to be Increased

The Bankruptcy Amendment Bill has increased the threshold of Bankruptcy to $5,000, up from $2,000. We note that is this different to the original $10,000 threshold that was proposed & welcomed.

All of the proposals in increases in the income, asset and debt thresholds for voluntary debt agreements have been deferred which is disappointing given the number of Part IX Debt Agreements our clients are experience on small debts (with Part IX Debt Agreement providers like Fox Symes heavily advertising this service).

Other changes include;
- increasing the stay period before a creditor can commence action to recover debts from seven to 21 days
- strengthening the penalties for those involving fraud