COVID-19 has seen Australia and the world with unprecedented restrictions on business and these restrictions are proving extremely challenging for many usual and profitable and viable businesses.
The Government has extended these change until 31 December 2020:
- Creditors cannot issue statutory demands unless the debt is at least $20,000 (it was $2,000)
- Creditors cannot issue a bankruptcy notice unless the debt is at least $20,000 (it was $5,000)
- The time to respond to a statutory demand or a bankruptcy notice will increase from 21 days to 6 months
- A director will not be personally liable under the insolvent trading provisions if the debts were incurred in the ordinary course of business in the 6 month period from 25 March 2020. Relief will not apply to criminal conduct involving intent, such as dishonesty or fraud.
- Any debts incurred by the company will still be payable by the company
Posted in Insolvency & Bankruptcy
