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ARTICLE · 14 DECEMBER 2017

Creditor rights under recent corporate insolvency reforms

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Some amendments included the increased rights of creditors to improve consumer confidence in insolvency practitioners. .

AustraliaInsolvency/Bankruptcy/Re-Structuring
Paul Nogueira
Paul Nogueira
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How have they been aligned, enhanced, and improved?

With the Insolvency Law Reform Act 2016 being introduced, there have been many amendments to both the Bankruptcy Act 1966 and Corporations Act 2001.

These amendments were commenced in two tranches:

  • Tranche 1 commenced on 1 March 2017.
  • Tranche 2 commences on 1 September 2017.

The amendments' purpose was to:

  • Remove unnecessary costs and increase efficiency in insolvency administrations.
  • Align the registration and disciplinary frameworks that apply to registered liquidators and registered bankruptcy trustees.
  • Align a range of specific rules relating how personal bankruptcies and corporate external administrations are handled.

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