Temporary debt relief measures
Please note that on 25 March 2020, temporary changes came into effect to support individuals and businesses. The temporary debt relief measures include:
- Debt threshold for creditors to apply for a Bankruptcy Notice against a debtor will increase from $5,000 to $20,000.
- Timeframe for a debtor to respond to a Bankruptcy Notice before a creditor can commence bankruptcy proceedings will be increased from 21 days to up to six months.
- Temporary protection period procedure available for debtors to prevent recovery action by unsecured creditors will increase from 21 days to six months.
These temporary measures will be available for six months. The temporary changes do not impact on Bankruptcy Notices issued before 25 March 2020.
Visit the Australian Financial Security Authority website for further information on the temporary measures.