Bankruptcy Act – Statutory Thresholds

The Bankruptcy Act contains statutory thresholds concerning limits for:

Income;
Assets; and
Unsecured debts

These statutory thresholds will govern which personal insolvency product you may be eligible for and will also govern what assets you can retain in bankruptcy and whether you will become liable for statutory income contributions in bankruptcy.

Income Contribution Calculator

These thresholds are updated by ITSA [...]

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One if five cases choose debt over bankruptcy

Bankruptcy levels in the past financial year were at their second highest on record but one in five struggling borrowers facing financial ruin chose to enter into a debt agreement rather than surrender their assets.This month marks the first anniversary of new laws that stop debt agreement administrators charging battlers upfront fees before creditors are [...]

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ITSA Bankruptcy Statistics 2008/2009

The Insolvency Trustee Service Australia has released the 2008/2009 Personal Insolvency Statistics.
The statistics reveal the following:

11% annual increase in total Personal Insolvency appointments
29% annual increase in Debt Agreement appointments

The statistics reveal that many Australians (8,567) in the last 12 months (July 2008 to June 2009) avoided formal bankruptcy by entering into a legally binding Debt [...]

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2009 Bankruptcy Legislation Amendment Bill passed by Parliament

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 [...]

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