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 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.