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ARTICLE · 18 JULY 2024

Australian bankruptcy system reforms: enhancing fairness and efficiency

Cathro & Partners
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Australian Government is set to introduce a series of significant reforms to the nation's bankruptcy system.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Andrew Blundell
Andrew Blundell
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On 8 July 2024, off the back of the submission process run by the Attorney Generals Department in relation to personal insolvency, which concluded in September 2023, Mark Dreyfus, announced that the Australian Government is set to introduce a series of significant reforms to the nation's bankruptcy system.

The stated aim of the changes is to make the personal insolvency system fairer and more balanced, ensuring it operates in the best interests of all Australians. The reforms are designed to address key concerns about fairness and the stigma associated with bankruptcy while also supporting creditors.

Having assisted the Australian Credit Forum and the Australian Institute of Credit Management in crafting their submissions in September 2023, it is interesting to see what has now been announced. Of the reforms announced, all were proposed prior to the commencement of the consultation process.

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