23 Jun Bankruptcy during Covid-19
There have been changes made to the bankruptcy laws to protect people from being forced into bankruptcy until 25 September 2020.
- From 25 March 2020 until 25 September 2020 protections are in place to limit forced bankruptcy
- You cannot be forced into bankruptcy if the debt owed is under $20,000 (it was $5000 pre-pandemic)
- If you receive a bankruptcy notice (for a debt of more than $20,000) then the time you have to respond has been extended from 21 days to six months.
What do the changes mean?
The changes mean that creditors may be more flexible on repayment arrangements and be more likely to accept reduced lump sum settlements as it is now very difficult for a creditor to force you into bankruptcy. However depending on circumstances, bankruptcy still may be the best option for some people.
So now you time to to consider the consequences and decide on a plan to manage your serious financial difficulty.
How we can help
There are alternatives even if your situation is serious. Talk to us about the Financial Hardship obligations of your creditors, Moratoriums and restructured payment amounts and at Active Debt Specialists, we are experts at implementing the Debt Agreement* repayment option, which has no interest, stops debt collectors and your repayment is only what you can afford.
We can help find the right solution.
Give us a call today on 1800 085 550 for a free no- obligation confidential chat.
* Debt Agreements will affect your credit rating and conditions apply. Find out first.