Call for submissions on draft bankruptcy legislation

25/08/2009

Attorney-General Robert McClelland has released an exposure draft of the Bankruptcy Legislation Amendment Bill 2009. Members who would like to make a submission should send their written comments to bankruptcy@ag.gov.au by 14 September 2009.�

The objects of the bill, as provided by the explanatory memorandum, are:

1. to provide a more streamlined process for fixing trustee remuneration and a more transparent process for reviewing that remuneration; 2. strengthen the penalties for some offences and ensure these are in line with the penalties for other similar offences; 3. to remove the outdated concept of Bankruptcy Districts in order to provide more flexibility in personal insolvency administration; 4. to increase the minimum debt for a creditor’s petition to reflect changes in the economic environment; 5. to increase the stay period that follows a declaration of intent to file a debtor’s petition to allow debtors to better assess their options; and 6. to increase the debt, income and asset tests thresholds for debt agreements to ensure the thresholds keep pace with increasing wages and the increasing availability of credit.

**25 August 2009 **