Temporary debt protections put in place in March will be wound back on 1 January, but a permanent increase in the bankruptcy threshold will apply.
Before the pandemic, the minimum threshold to trigger a bankruptcy was $5,000: It was raised to $20,000 in March, and will be wound back to a new threshold of $10,000 in January.
Other temporary debt protections will also cease, including the amount of time an individual has to respond to a bankruptcy notice restored to 21 days, down from six months.
Twenty-one days’ relief from creditors – also down from six months – will cease.
The term ‘zombie company’ refers to companies surviving through such government protections, which otherwise would have declared bankruptcy or become insolvent.
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Read the full article at: https://www.savings.com.au/savings-accounts/zombie-company-protections-end-1-january