Reforms to the bankruptcy system

What the video says

Treasury has released draft bankruptcy laws for comment. They're proposals, not yet in Parliament, so nothing has changed.

Now, a creditor can seek to bankrupt you over debts of $10,000 or more. The draft doubles that to $20,000 from July 2027, then indexes it.

Get a bankruptcy notice, and you have 21 days to comply. The draft gives you 28.

Today, even proposing a debt agreement counts as an act of bankruptcy. The draft removes that.

Separately, a later regulation change would let bankrupts be removed from the National Personal Insolvency Index after seven years, instead of staying listed permanently.

Bankruptcy usually still ends after three years. Submissions close 3 November.

The voiceover, as written in the video’s script.