Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Cooling-off period for intending bankrupts



Download PDFDownload PDF

FEDERAL MINISTER FOR CONSUMER AFFAIRS

AND MINISTER ASSISTING THE TREASURER FOR PRSCES SENATOR NICK BOLKUS

E

ONWEALTH NTARY LIBRARY ICAH

1/89

COOLING-OFF PERIOD FOR INTENDING BANKRUPTS

The Minister for Consumer Affairs, Senator Nick Bolkus, today said that people who opted for bankruptcy now had a seven day "cooling-off" period.

Senator Bolkus said that amendments to the Bankruptcy ACt 1966, which came into effect this week, would allow for a pre-bankruptcy moratorium.

"This procedure is designed to minimise the chance of mistaken and unintented bankruptcies," said Senator Bolkus.

"Going bankrupt is a serious step and should only be taken after careful consideration of the possible alternatives.

"People in financial difficulties should not petition for bankruptcy as a first resort or without sufficient advice."

The amendments allow, that, upon acceptance by a Registrar in Bankruptcy (an officer of the Federal Court) of a declaration of intent, a debtor will have a seven day moratorium from pressure being placed him or her by a creditor.

Senator Bolkus said this period would allow a person who was in serious financial difficulties sufficient time to have their position assessed by a financial counsellor or

an accountant.

"People have to remember that bankruptcy is an irrevocable step and cannot be undone, making it essential that all alternatives 'are examined," said Senator Bolkus.

"When the Registrar in Bankruptcy accepts a declaration of intent, that person is obliged to direct the debtor's attention to sources of advice and guidance, such as financial counsellors or accountants."

Wednesday, January 4, 1989 Adelaide.

PA SJ LAMENT HOUSE, CANBERRA, A.C.T. TEL: (062) 77 7380 FAX: (062) 73 4158