12 Month Bankruptcy - UPDATED
Legislation passed through Federal Parliament during 2017 and 2018 as part of the Bankruptcy Amendment (Enterprise Incentives) Bill 2017, which amongst other things, would reduce the standard bankruptcy period from three years to just one.
The proposed changes are considered likely to have a significant impact on the current personal insolvency mix, and in particular, would be expected to see a decrease in the popularity of Part IX debt agreements which currently dominate personal insolvency statistics.
Commencement dates however remain up in the air, with leadership changes in Canberra in 2018 and a pending Federal election in May 2019, the Bill appears to have fallen in priority and given the parliamentary schedule, it is unlikely that the Bill will be considered again until late 2019. The changes would not ultimately be implemented until 6 months after having received Royal assent, hence are not likely to be seen until at least mid 2020.
If ultimately implemented the proposals are expected to have significant implications for individuals suffering financial distress in the assessment of the best options available to them. We recommend that anyone considering entry into a Part IX Debt Agreement, a Part X Personal Insolvency Agreement, Bankruptcy, or just otherwise contemplating any actions to settle creditor claims, should contact us to discuss the implications of the pending changes prior to doing so.
Robson Cotter Insolvency Group are at the forefront of bankruptcy administration and will provide updates at this location as further details are announced by Government.
Please contact us at any time to discuss options for dealing with personal financial distress including how 12 month bankruptcy may work for you.