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 2020.
The $20,000 limit is not entirely new, as the threshold was…
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