Insolvency

Among the many legislative changes introduced as a consequence of COVID-19 and its impact on individuals and businesses new legislation passed by the Federal Parliament has made significant changes to Corporations Law and Bankruptcy legislation.

The changes are said to apply for a limited period of 6 months. Given the uncertainty that we face it will be important to monitor whether that period may be extended.

The changes include:

• Increases to the minimum amount of a debt for which a bankruptcy notice can be served from $5,000.00 to $20,000.00.
• Increases to the minimum amount of a debt for a statutory demand on a Company from $2,000.00 to $20,000.00.
• Increases to the compliance period for bankruptcy notices and statutory demands to 6 months.

For further advice or assistance whether you are a creditor or a debtor our Litigation and Dispute Resolution group will be pleased to assist you.

Author: Peter Wilson

Published: 2 June 2020

 

The information in this article is general in nature and is not to be relied upon as legal advice. As always, we recommend you seek thorough legal advice to consider your own circumstances and determine whether the information contained in this article is applicable to you.  This article is current as at the date of publishing but will not be updated as circumstances change.