The involuntary bankruptcy threshold will lift from $10,000 to $20,000, Attorney-General Mark Dreyfus says, giving debtors more breathing room before their creditors can launch court action.
On Monday, Attorney-General Dreyfus said the federal government will introduce a suite of reforms to the bankruptcy system, bringing it up to speed with the contemporary economic landscape.
In a statement, Dreyfus said the amendments will “ensure a fairer outcome for debtors in the personal insolvency system,” and “reduce the stigma currently associated with entering into bankruptcy”.
Chief among the reforms is a permanent lift to the bankruptcy threshold, which has rested at $10,000 since January 1, 2021.
The $20,000…
