Personal Insolvency Consultation
The Law Council of Australia provided a submission to the Attorney-General's Department in response to Personal Insolvency Consultation.
The Discussion Paper sets out four proposed reforms to the Bankruptcy Act 1966 (Cth) and the personal insolvency system more generally:
- an increase to the bankruptcy threshold from $10,000 to $20,000 (Proposal 1);
- an increase to the timeframe a debtor has to respond to a bankruptcy notice from 21 days to 28 days (Proposal 2);
- a reduction in the period of time for which a discharged bankrupt is recorded on the National Personal Insolvency Index (NPII) (Proposal 3); and
- amending the Bankruptcy Act so that an ‘act of bankruptcy’ is not taken to have occurred where a debtor submits a debt agreement proposal to the Official Receiver, or where a debt agreement proposal is accepted by creditors (Proposal 4).