26th May 2020   |   Business

The Australian Government has temporarily changed bankruptcy law to help protect people who are facing unmanageable debt as a result of the economic impacts of COVID-19.

If you’re a sole trader, or operating a business as a partnership, you could face personal bankruptcy if you can’t pay your debts.

If you’re in financial difficulty you can now apply for temporary debt protection; this prevents recovery action by unsecured creditors for six months. You can use the time to:

  • -seek free advice from a financial counsellor
  • -negotiate payment plans with creditors
  • -consider whether you require a formal insolvency option.

In addition, the temporary debt relief measures have increased the:

  • -minimum amount of debt that can trigger bankruptcy (from $5,000 to $20,000)
  • -time an individual has to respond to a Bankruptcy Notice (from 21 days to six months).

If you’re concerned about your finances please talk to us, info@ax3.com.au and see how we can help.

Bankruptcy law changes to provide relief

The Australian Government has temporarily changed bankruptcy law to help protect people who are facing unmanageable debt as a result of the economic impacts of COVID-19.

If you’re a sole trader, or operating a business as a partnership, you could face personal bankruptcy if you can’t pay your debts.

If you’re in financial difficulty you can now apply for temporary debt protection; this prevents recovery action by unsecured creditors for six months. You can use the time to:

  • -seek free advice from a financial counsellor
  • -negotiate payment plans with creditors
  • -consider whether you require a formal insolvency option.

In addition, the temporary debt relief measures have increased the:

  • -minimum amount of debt that can trigger bankruptcy (from $5,000 to $20,000)
  • -time an individual has to respond to a Bankruptcy Notice (from 21 days to six months).

If you’re concerned about your finances please talk to us, info@ax3.com.au and see how we can help.

 

Disclaimer

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.

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