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ARTICLE · 28 MARCH 2018

One year bankruptcy - one step closer

BRI Ferrier
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Bill proposes to reduce minimum term of bankruptcy to 1 year from date bankruptcy declared and Statement of Affairs lodged. .

AustraliaInsolvency/Bankruptcy/Re-Structuring
Stuart Otway
Stuart Otway
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Introduction

The Bankruptcy Amendment (Enterprise Incentives) Bill 2017 ("the Bill") which proposes to amend the provisions of the Bankruptcy Act 1966 ("the Act") was referred to the Senate Legal and Constitutional Affairs Legislation Committee ("the Committee") on 30 November 2017 for inquiry.

Proposed changes

The Bill proposes that the minimum term of bankruptcy be reduced from three years to one year from the date on which an individual who is declared bankrupt lodges their Statement of Affairs.

The primary reason for the proposed reduction in term is to:

"foster entrepreneurial behaviour and reduce the stigma associated with bankruptcy while maintaining the integrity of the regulatory and enforcement frameworks for the personal insolvency regime."

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