top of page
  • Xservice Debt Collection

Temporary Insolvency Reliefs End on 31 DEC 2020 - An Update from Debt Collection Agency

Update from debt collection agency December 2020

On March 25, 2020, the Australia Government provided temporary reliefs to financially distressed businesses for a 6 month period until September 25, 2020, which including but not limited to increase debt threshold for creditors issuing a statutory demand on a company under the Corporations Act 2001 from $2,000 to $20,000 and bankruptcy notice from $5,000 to $20,000, timeframe for responding the notices has been increased from 21 days to 6 months, also protect directors against insolvency trading. These reforms have significant impact on debt recovery and debt collection agency.

Due to the current economic situation, these temporary reliefs have been further extended to 31 December 2020 which aimed to prevent economic collapse.

However, the temporary measures can only support businesses for a limited period, and there is a significant risk that they are only delaying the inevitable. It is expected that there will be a boom in company liquidations and external administrations when the reliefs come to an end.

Creditors which have their money collected before crisis hit are deemed to be in a safer position. If you need debt collectors' assistance to recover outstanding receivables, please do not hesitate to contact our team on (03)9077 9780, our services cover VIC, NSW, QLD and WA.

Need more advice about debt collection? Read our blog “Can We Recoup Collection Costs From Debtors?”.

Consider our “Commercial Debt Collection” service.

Learn more about “Debt Collectors Victoria”.


bottom of page