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What you need to know before declaring bankruptcy
The temporary changes to bankruptcy law are:
The debt threshold for creditors to apply for a Bankruptcy Notice against a debtor will increase from $5,000 to $20,000. This means you have to owe someone $20,000 or over before they can take you to court to bankrupt you. This is irrelevant of course if you just want to go bankrupt yourself.
Timeframe for a debtor to respond to a Bankruptcy Notice before a creditor can commence bankruptcy proceedings will be increased from 21 days to up to six months. Once again this is someone who is trying to bankrupt you, they will now be required to wait 6 months now to get a court order to bankrupt you. Remember this is the step after the initial statutory demand phase.
Temporary relief for directors from any personal liability for trading while insolvent for 6 months. In other words, a creditor such as the ATO cannot make you as a director personally liable for company debts for the next 6 months no matter how insolvent you are trading.