cover image: Submission in response to the Personal Insolvency Discussion Paper

20.500.12592/5i0m3uk

Submission in response to the Personal Insolvency Discussion Paper

9 Oct 2024

Jenny, when served with the Statement of Claim, provided it to her husband who reassured her that “it will be taken care of.” The husband failed to meet the demands of the creditors and failed to file a defence to the Statement of Claim. [...] 8.1 Increasing the bankruptcy threshold Question 1: Do you 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 expand on your response Question 2: If you do believe that any of the current economic circumstances have the capacity to inform the policy setting for increasing the defau. [...] Many of our clients are not aware of the debts in their name, most have no access to information about the original liability and some may not be able to access the right advice at the right time to avoid bankruptcy and the lifelong impact it can have on their employment, housing and participation in the economy, increasing a person’s reliance on government support. [...] In our experience, the proposal to increase the period to 28 days will be inadequate for victim survivors of family and domestic violence because receiving a bankruptcy notice can be the first time a person is aware of debts in their name and the previous court proceedings against them. [...] However, perpetrators of family violence often exploit the system to the detriment of the victim survivor who is left bankrupt, has no standing in the Family Court, and often loses their home, while the perpetrator is able to seek priority over the property vested in the trustee.
Pages
13
Published in
Australia

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