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$20k court wind-ups and 6 months to respond

Mix of my LinkedIn Articles from Sunday 22/3/2020 and Monday 23/3/2020 … BREAKING 22/3/2020: The government has just announced (in its stimulus package) an increase to the threshold at which a creditor can take action to initiate insolvency from $2,000 to $20,000 and giving companies six months instead of 21 days to respond. It probably…

More holes than a block of swiss cheese

Registered bankruptcy trustee remuneration is in the news again, thanks to the annual report produced by Australian Financial Security Authority (AFSA). It really should not be! AFSA have concluded that the remuneration system doesn’t appear to be working effectively and that the level of dissatisfaction with remuneration is higher than the yearly number of complaints…

So Bankruptcy lasts 3 years right?

 Not for one unlucky guy, who did everything right (or at least that’s what everyone thought). Ken knew he was about to be made bankrupt in court in September 2016, so he took it upon himself to fill out his statement of affairs (“SOA”) and sign it a few days before he was made bankrupt.…

Bankruptcy notices and pseudonyms

Can a bankruptcy notice (BN) use pseudonyms? Yes, according to a Federal Court case handed down on Thursday. Imagine, you receive a notice of an application to make you a bankrupt and all the notice says is: – your name is LF DB – the creditors name is Ms S M – you owe $6.55…

Payments from income protection policies may be assessable income

Income protection payments from personal injury are, according to a very recent Federal Court case, assessable income under the Bankruptcy Act. This means the bankrupt was liable to pay contributions! Under the Bankruptcy Act, a bankrupt who earns over the prescribed income threshold, in this case $54,737, is liable to pay income contributions to the bankrupt estate.…