Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Govt set to introduce new bankruptcy laws

Staff Reporter 1 minute read

The federal government has unveiled changes to \bankruptcy laws for householders suffering mortgage stress.

Under the proposed changes, the minimum debt for which a creditor can petition for bankruptcy will rise from $2,000 to $10,000 while the stay period from filing a debtor’s petition to when creditors get their hands on assets would go from seven days to 28.

The amendments come as bad debts soar and personal insolvencies hit record levels thanks to the ongoing effects of the global financial crisis.

According to a report in The Australian Financial Review, attorney general Robert McClelland, who will release the draft legislation later today, is determined to make good on his promise to release people from bankruptcy after one year – a suggestion that has been fiercely opposed by banks and non-bank lenders.

Lenders want the current three year period retained as they believe being released from income contributions after one year would make bankruptcy a more attractive way to escape debts.

Govt set to introduce new bankruptcy laws
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
Renee blethyn NextGen.Net appoints head of broker

NextGen.Net has appointed its inaugural national head of broker ...

BBS Summit 2021 ta Better Business Summit and Awards Sydney postponed

Due to the ongoing COVID-19 resurgence in Sydney, the NSW leg of ...

Andrew Moulds Darren Smith ta Lend adds FleetPartners to platform

Lend has integrated vehicle fleet leasing and fleet management pr...