Among the proposed economic initiatives put forward by Prime Minister Scott Morrison and the Treasury on Sunday, 22 March, were a number of changes to bankruptcy law.

According to the Australian Financial Security Authority (AFSA), the debt threshold for creditors to apply for a bankruptcy notice against a debtor will increase to $20,000.

In addition, the time frame for a debtor to respond to a bankruptcy notice before a creditor can commence bankruptcy proceedings will be increased to up to six months.

The temporary protection period procedure available for debtors is also likely to change to prevent recovery action by unsecured creditors for a six-month period.

AFSA has outlined that the changes are expected to come into effect shortly.

nestegg will provide an update as we learn more. 

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.