This is a big reform for debt administrators and will be phased in over the next 9-12 months.
What are the main changes (in summary) **more details to come soon:
1. to utilise debt agreements, the maximum asset limit has been doubled to $223,350;
2. debtor contributions through the debt agreement must now be payable within 3 years (or 5 years, subject to restrictions);
3. debt agreements can only be administered now by Debt Agreement Administrators, Registered Bankruptcy Trustees or the Official Receiver;
4. the administrator of the debt agreement must conduct investigations, and do many other thing expected of a Bankruptcy Trustee;
5. … and many more.
No doubt these changes will have a big impact on the industry, so it pays to be prepared and know your obligations and rights.
