<<   Return to Article List News/Events

Changes to the Bankruptcy Act 1966

The Bankruptcy Legislation Amendment Act 2010 was passed by the Federal Parliament on 24 June 2010 and has resulted in some timely changes to the Bankruptcy Act 1966.

The amendments made include:-

• the provision of a more streamlined process for fixing trustee remuneration and a more transparent process for reviewing that remuneration; and
• strengthening of penalties for some offences; and
• increasing the stay period  from 7 to 21 days that follows a declaration of intent to file a debtor’s petition to allow debtors to better assess their options.

By far the most important amendment however, is the increase in the minimum debt upon which a creditor can petition for forced bankruptcy. The minimum debt amount has increased from $2000.00 to $5000.00 and reflects the current economic environment. It appears to also be a way to try and limit the use of bankruptcy notices as a primary method of debt collection. This amendment came into effect on 12 August 2010 and is therefore relevant to any applications made now and in the future.