International Law

Senate committee supports Bankruptcy Amendment Bill

By David Jacobson

The Senate Legal and Constitutional Affairs Legislation Committee has recommended that the Senate pass the Bankruptcy Legislation Amendment Bill 2009 in its present form.

One of the most contentious issues was the creditor’s petition threshold.

The Report states:

the committee considers it appropriate to increase the existing $2,000 threshold for a creditor’s petition to $10,000. The threshold should recognise significant changes in personal debt levels over the past 14 years, as well as the cost and complexity of bankruptcy proceedings (as compared with other available debt collection methods), and the magnitude of the consequences that bankruptcy has for a debtor. The committee adds that, in this day and age, it would be harsh and punitive to bankrupt an individual on the basis of a debt as low as $2,000. The committee accepts that $10,000 is an amount that appropriately balances the interests of all relevant parties.

Full post as published by Australian Regulatory Compliance Review on February 24, 2010 (boomark / email).