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Showing posts from September, 2009

what’s new with Bankruptcy law changes 2009

The key plank of the reforms is raising the minimum debt required to trigger bankruptcy from $2,000 to $10,000.1966 was  the year the bankruptcy laws were introduced. At that time, someone owed money could begin bankruptcy proceedings over a debt of $500 or more"The Government has basically said this is to protect the battlers with their credit card debts from the big bad banks, but we're worried about the impact on small business."He gives the example of a tradesperson who has done $7,000 or $8,000 worth of work for a private individual, only to find the customer has not paid up."That is a big financial impact on a small business and to restrict their recovery option because it falls below that $10,000 threshold is an area of concern. The small business that might be caught with a string of debts below $10,000 is an even bigger concern."The attorney general says the act needs refreshing because most bankruptcies now relate to consumer debt involving people wit…