Protection for bankruptcy extended
The Morrison Government has extended the regulatory relief for individuals and corporations suffering financial stress during the pandemic to 31 December 2020. These temporary relief measures were due to expire on 25 September and will now remain in force until the end of the year, unless extended again.
This means, once the necessary regulations are passed, the following temporary changes will remain in place until the end of the year:
- The increased threshold for creditors to issue either a bankruptcy notice or a statutory demand will remain at $20,000 (an increase from $5,000 and $2,000 respectively).
- The increased timeframe for a debtor to respond to either a bankruptcy notice or statutory demand will remain at six months (an increase from 21 days).
These changes do not impact a creditor's ability to enforce their rights through the courts. Please click here for our article providing background information about these changes.
If you have any queries about these temporary changes to the insolvency and bankruptcy laws our Commercial Disputes team can help.