As of 1st January 2021, the temporary COVID-19 debt relief measures introduced by the Government have been removed.
The temporary debt protection period pre-covid was 21 days; in March 2020, the Government extended this period to 6 months for applications made up to 31st December. However that period has expired and from 1st January current amounts/time periods are:
- the minimum amount of debt that can trigger bankruptcy is $10,000, down from $20,000
- the amount of time an individual has to respond to a bankruptcy notice is 21 days, reduced from six months
- temporary debt protection allows for 21 days relief from creditors, instead of six months.
We urge anyone struggling with unmanageable debt to contact their Creditors to discuss hardship options with them as soon as possible. A financial counsellor can also help with this as well as guide you on other options available.
Life After Debt is a personal insolvency firm, assisting everyday Australians in the assessment, preparation, logement and administration of both informal and formal debt management arrangements. Australian Financial Solutions P/L, trading as Life After Debt, is registered with AFSA as a Debt Agreement Administration firm (#1211) and also a member of AFCA (#77102).
Should you, or anyone you know be struggling with unmanageable debt, please contact our friendly team today for a no obligation and free initial assessment.