A significant leap forward in Australia's insolvency regime

A significant leap forward in Australia's insolvency regime


A significant leap forward in Australia's insolvency regime
By Olvera First|10 January 2021
Promoted by Olvera First
Insolvency law has long been a blunt instrument for resolving the financial pitfalls of small business. Lacking the resources, knowhow and sheer resilience of their larger cousins, small businesses are ill-equipped to survive the insolvency process, often leading to sub-optimal outcomes for both owners and creditors.
Thankfully, change is here. The federal government has passed through the most wide-ranging reforms of Australia's insolvency framework in at least 30 years. While the changes are a direct response to the coronavirus pandemic – a catastrophe that has disproportionately affected small businesses – they're a long overdue reimagining of how debt restructuring can work for those with liabilities of less than $1 million.

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