Treasurer Josh Frydenberg. Source: AAP/Daniel Pockett.
The Morrison government has extended temporary bankruptcy protections that save small business owners from personal liability for trading while insolvent during the COVID-19 pandemic.
Initially announced in late-March, the insolvency and bankruptcy protections were slated to expire later this month, but will now last until December 31.
These relief measures essentially make it much more difficult for creditors to pursue businesses for outstanding debts, causing a sharp decline in insolvency proceedings in recent months.
Specifically, the measures:
- Increase the threshold at which creditors can issue statutory demands to a company, from $2,000 to $20,000;
- Increase the time compan…
Read the full article at: https://www.smartcompany.com.au/finance/bankruptcy-insolvency-coronavirus/
