The Australian Parliament passed the 2009 Bankruptcy Legislation Amendment Bill in July 2010. The bill introduced key reforms, including:
- increasing the minimum amount for which a creditor can petition for bankruptcy from $2,000 to $5,000;
- increasing the stay period from when a declaration of intent to file a debtor’s petition is filed to when a creditor may commence action to recover debts from seven to 21 days;
- introducing a more efficient and transparent process for fixing and reviewing trustee’s remuneration in Bankruptcy
- strengthening the penalties for some offences, particularly those involving fraud;
- Removing the Bankruptcy Districts from the Act; and
- enhancing powers for the Inspector-General in bankruptcy to investigate possible offences.
The Bill has been the subject of extensive public consultation following the release of an Exposure Draft last year.
