Changes to Bankruptcy & Insolvency Laws (COVID-19)

The implementation of Coronavirus Economic Response Package Omnibus Act 2020 has introduced new changes to bankruptcy and insolvency laws.

Threshold for Stautory Demand

The threshold amount for a statutory demand which was originally $2,000 has been increased to $20,000 until 25 September 2020.

Bankruptcy Notice Response Time

Debtors now have six months to comply with a bankruptcy notice. This has been increased from the original 21 days. Creditors may now only commence enforcement on a debtor after six months from when the declaration of intention to present a debtor’s petition is presented.

This article is for general information purposes only and should not be relied on as legal advice. For specific and up-to-date legal advice regarding your situation please contact a qualified lawyer.