The Attorney General’s office announced effective 1 January 2021 that the new bankruptcy threshold is $10,000.  This is an increase from $5,000 which was set in 2010 and a reduction in the temporary threshold of $20,000 that was implemented on 24 March 2020 in response to Covid-19 pandemic.

It should be noted that the time to respond to a bankruptcy notice has reverted to 21 days from the temporary 6 months implemented in response to the pandemic.

If you are struggling with financial debt, debt counsellors, who have experience in this area, may be able to recommend the best solution for your particular circumstances.  You can contact a financial counsellor through Moneysmart.

 

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