Small Business Insolvency Reforms
Nicholas Boyce of Results Legal spoke at recent BICB seminar on, ‘Understanding the small business insolvency reforms and how this impacts you, the creditor.’
After a year of unprecedented change we have seen various legislative changes and the introduction of the small business insolvency reforms. As creditors it is important that we understand the impact this has on you and your customers.
Here are some key points from new reforms introduced January 1, 2021.
Creditors Statutory Demands:
1. the threshold to issue a statutory demand was returned to the sum of $2,000; and
2. the timeframe for debtors to respond to a statutory demand was returned to 21 days.
1. the debt threshold is now $10,000; and
2. the timeframe for debtors to respond to a bankruptcy notice has been reduced from 6 months to 21 days.
Nicholas spoke for 30 minutes and the video is recorded. There is a PDF to download as well. Please click here to access this up to date information.