This video and article about the changes to bankruptcy laws due to COVID-19 has been provided by Rochelle Castro, RC & Co Lawyers.
Changes in the Laws as a result of COVID-19 in Bankruptcy Laws. The circumstances concerning COVID-19 have been very adversarial and unprecedented in nature. Whilst this has had major implications for Australians Health and Lifestyles, it has also influenced the Australian Parliament to put changes to legislation in place.
One major change is temporary changes to bankruptcy laws which are imposed for 6 months beginning 25 March 2020 to protect both individuals and businesses There are 2 major changes to bankruptcy laws.
First is the minimum amount for which creditors can issue a bankruptcy notice against a debtor significantly increasing from $5,000 to $ 20,000.
The second change is that debtors now have 6 months to respond to bankruptcy notices increasing from 21 days.
These changes only apply to bankruptcy notices filed after 25 March 2020 and any notices filed before or prior to 24 March 2020 will only be provided the 21-day response period for compliance.
This post appears in Strata News #418.
Have a question about the changes to bankruptcy laws due to COVID-19 or something to add to the article? Leave a comment below.
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