Some weird proposed bankruptcy amendments

Should we allow undischarged Bankrupts the right to accumulate savings or assets from their income?

What about changing s139ZH of the Bankruptcy Act (“BA”) to force the Registered Trustee to account to the bankrupt for any overpaid income contributions?

This is as opposed to the current method where overpayment are only set-off against future income contribution obligations.

How about amending s139T of the BA to exempt income contributions where even though the income assessment was accurate at the time it was completed, it is no longer appropriate or reasonable because of a change of circumstances, like undue hardship?

These are some of the changes proposed by the joint submission from the #FinancialRightsLegalCentre #ConsumerActionLawCentre and #FinancialCounsellingAustralia to the Senate Legal and Constitutional Affairs Legislation Committee in their inquiry into the Bill seeking to reduce the Bankruptcy period to 1 year from 3 years. 

Apologies for the mouthful.

In answer to these proposals on notice, the Attorney-General’s Department have noted these proposals as requiring further consideration and have represented that they will “monitor the application of the provisions.”

What do you think about these proposals?

Links are as follows:

See submission #13 – https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Legal_and_Constitutional_Affairs/BankruptcyAmendment/Submissions See question on notice 5 – https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Legal_and_Constitutional_Affairs/BankruptcyAmendment/Additional_Documents

#SVVoidables

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