This video and article about the changes to bankruptcy laws due to COVID-19 has been provided by Rochelle Castro, RC & Co Lawyers.
The Commonwealth Government has announced an extension of the temporary debt relief measures that is made to support people facing bankruptcy as a result of COVID-19. What was originally scheduled to be ending in late September 2020 that was introduced in March 2020 is now extended to 31 December 2020.
The extension provides a temporary debt relief measure which includes:
- an increase the minimum amount of debt that can trigger bankruptcy from $5,000 which has increased to $20,000
- the amount of time an individual has to respond to a bankruptcy notice from 21 days to 6 months
- temporary debt protection period where people can for 6 months relief from creditors which is an increase from 21 days
During these times of COVID-19 there are significant considerations that need to be taken in respect of applying bankruptcy laws or if you are affected by them.
If you would like to know more about these temporary measures in respect of the changes to bankruptcy laws, please contact us by visiting our website at www.rccolawyers.com.
This post appears in Strata News #437.
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