Name
Organisation
What industry sector do you represent?
Which state/territory do you represent or live in?
What is or has been your interaction with the personal insolvency system?
In which capacity are you making your submission?
What area do you represent or reside in?
Do you believe that any of the current economic circumstances have the capacity to inform policy for increasing the default bankruptcy threshold to $20,000?
Please expand on your response
Insolvencies in Australia remain artificially supressed due to intervention by the Morisson Government. Insolvencies have already increased to precovid levels in the UK. However it is not that the financial distress is not present in Australia it is just that it is not being resolved in Australia through bankruptcy.
Endnotes
AFSA monthly Statistics Highlights, March 2023; AFSA state of the Personal Insolvency System Report, January 2023.
AFSA Summary Statistics on Liability of Debtors, May 2023 as requested by the Attorney-General’s Department.
AFSA Summary Statistics on Liability of Debtors, May 2023 as requested by the Attorney-General’s Department.
AFSA Summary Statistics on Liability of Debtors, May 2023 as requested by the Attorney-General’s Department.
If you do not believe that any of the current economic circumstances have the capacity to inform the policy setting for increasing the default bankruptcy threshold to $20,000, please explain whether an alternative amount should be considered for the threshold and why.
The figure should remain at $10,000. However it should be indexed.
There seems to be a misunderstanding in relation to what the $10,000 figure is. This is the amount that must be owed to an individual creditor in order to initiate bankruptcy proceedings.
Do you believe that the period for a debtor to respond to a bankruptcy notice should be increased from 21 days to 28 days?
If you do believe that the period for a debtor to respond to a bankruptcy notice should be increased from 21 days to 28 days, should there be a transition period before any reform takes effect? Please expand on your answer.
No
Do you believe that any of the current economic circumstances have the capacity to inform the policy setting for a reduced record period of 7 years on the NPII for bankruptcies?
Would a reduced record period of 7 years on the NPII for bankruptcies benefit debtors?
Please expand on your response.
The NPII period doesn't in general effect debtors as it is not used for credit assessing purposes.
Do you believe that there may be any adverse impacts from reducing the permanent record period on the NPII to 7 years for bankruptcies?
Do you believe that any circumstances should be exempt from a reduced record period on the NPII for bankruptcies?
If you support the proposed reform to reduce the NPII permanent record to 7 years for bankruptcies, should there be a transition period before any reforms take effect?
Do you believe that any current economic circumstances have the capacity to inform policy for repealing paragraphs 40(1)(ha) and 40(1)(hb) of the Bankruptcy Act?
Do you believe that there may be any adverse impacts from repealing paragraphs 40(1)(ha) and 40(1)(hb) of the Bankruptcy Act?
Please expand on your response.
Section 40(1)(ha) and 40(1)(hb) have never been used to Bankrupt anyone. It's only purpose is to scare potential debtors
Do you believe any circumstances should be exempt from repealing the acts of bankruptcy provided for under paragraphs 40(1)(ha) and 40(1)(hb) of the Bankruptcy Act?
If you support a reform to repeal paragraphs 40(1)(ha) and 40(1)(hb) of the Bankruptcy Act, should there be a transition period before any reforms take effect?
Please expand on your response.
It should be reterospective as well
