Bankruptcy Amendment Bill introduced

The Attorney-General, Robert McClelland,has introduced the Bankruptcy Legislation Amendment Bill 2009 into Parliament.

UPDATE: The Bill has been referred to the Senate Legal and Constitutional Affairs Legislation Committee. Its Report is due on 2 February 2010.

The Bill introduces a number of reforms, including:

• increasing the minimum amount for which a creditor can petition for bankruptcy from $2,000 to $10,000;
• increasing the stay period from when a declaration of intent to file a debtor’s petition is filed to when a creditor may commence action to recover debts from seven to 28 days;
• increasing the income, asset and debt thresholds to allow more people in financial distress to enter into voluntary debt agreements;
• introducing a more efficient and transparent process for fixing and reviewing trustee remuneration;
• strengthening the penalties for some offences, particularly those involving fraud; and enhancing powers for the Inspector-General in Bankruptcy to investigate possible offences.