New Temporary Debt Protection form available now from AFSA
Temporary changes to Commonwealth bankruptcy law.
Also fully digitising the way your clients can apply for Temporary Debt Protection (formerly known as the Declaration of Intent).
The new version of the form is simpler for debtors to complete and allows more timely relief than previously available.
How your clients can apply for Temporary Debt Protection
The new web-form and information that explains Temporary Debt Protection is available here.
Your clients will be able to apply for Temporary Debt Protection within the Bankruptcy Online portal. To reflect the expanded functionality of Bankruptcy Online, we have changed the name to Insolvency Services.
Clients who are unable to apply online can request a printable PDF version of the form by calling AFSA’s National Service Centre on 1300 364 785.
How you can help your clients apply for Temporary Debt Protection
The Financial Counsellor Toolkit contains a PDF of the Temporary Debt Protection form – you can download the PDF and work through the form with your clients. The form can be submitted by email or by post. You cannot access Insolvency Services and complete the web-form on behalf of your clients.
As I am sure you are aware, the Australian Government has recently made a number of announcements regarding economic stimulus measures to assist individuals and businesses that have been impacted by the COVID-19 crisis. On 22 March 2020, the Prime Minister announced changes to Commonwealth bankruptcy legislation that will lessen the threat of insolvency. These temporary changes will be in place for six months from 25 March 2020 (the day after Royal Assent was received). The Commonwealth Treasury has published a factsheet outlining the temporary changes.
For the next six months (from 25 March 2020):
- The minimum amount for which creditors can have a Bankruptcy Notice issued against a debtor will increase from $5,000 to $20,000
- The time a debtor has to respond to a Bankruptcy Notice will increase from 21 days to six months; and
- The relief that debtors’ receive by submitting a Declaration of Intention to file a Debtors Petition will be extended from 21 days to six months.