[Dallas McConnell]

Hi All,

Unsure if everyone is aware but we have just been advised by our legal firm the Bankruptcy Amendment (Enterprise Incentives) Bill 2017 was introduced into parliament in October 2017.

You can see a full copy of the bill below https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=s1097

In summary, the Bill amends the Bankruptcy Act 1966, to reduce the period of bankruptcy from 3 years to 1. Some of the other proposed changes to time periods that are also part of the Bill include:

• Disclosure by the Bankrupt when applying for credit;
• Seeking permission to travel overseas; and
• Attainment of certain licences and entering into certain professions.

The Bill still requires income contributions to be monitored for a period of 2 years after discharge. In this respect nothing has changed from the current laws.

The purpose of the reduction of the period is to foster entrepreneurial behaviour and reduce the stigma associated with bankruptcy, along with the following:

• Ensure practitioners adequately and appropriately administer estates;
• Ensure credit providers continue to have sufficient personal insolvency information to accurately assess an individual’s creditworthiness; and
• Maintain the integrity of the regulatory and enforcement framework under which AFSA operates.

Regards,
Dallas McConnell

[Ron Peters]

Hi everyone,

Dallas’ post raises a couple of interesting questions. If Bankruptcy is de-stigmatised, as the Government intends it to be, and becomes more ‘popular’ then:

1 – How can Councils use Bankruptcy and still preserve their effective security over the land granted by S550?

2 – How will Councils choose between using Bankruptcy, S713, Sheriff’s Sale, or Winding Up to gain leverage from the security over the land?

We have been discussing this with clients for a little while and have prepared a briefing guide answering both questions.

We’d love to share the guide with any council interested, please msg us here or at richardmc@oscollections.com.au and we’ll give you a copy.

Best wishes
Richard
0434 222032

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