Temporary changes to debt relief and bankruptcies brought into being in March will cease on Friday, with the bankruptcy threshold lifted.
On 24 March of this year, thefederal government announced a series of changes to bankruptcy law as part of itswider economic response to the COVID-19 pandemic.
Among the temporary changes implemented for personal bankruptcywere:
- an increase in the debt threshold from $5,000 to $20,000, which enables creditors to apply for a bankruptcy notice;
- an increase to the time frame for a debtor to respond to a bankruptcy notice (from 21 days to six months); and
- an increase to the temporary debt protection period available to debtors (from 21 days to six months).
As of this Friday (1 January 2021), those temp…
Read the full article at: https://www.theadviser.com.au/breaking-news/41164-covid-19-debt-relief-measures-to-change-this-week