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Insolvency Amendment Act 2009 comes in to force
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The Insolvency Amendment Bill 2009 introduced to Parliament on 9 March 2009 by the Minister of Commerce, Hon Simon Power, has now come into force.
The Insolvency Amendment Act 2009 (the Act) received the Royal Assent on 16 November 2009 and came into force on 17 November 2009. The Act changes certain aspects of the Insolvency Act 2006 including:
- The record of a debtor’s entry to a No Asset Procedure (NAP) will remain on the Insolvency Register for a period of four (4) years after discharge.
- Where a debtor has been adjudicated bankrupt on two or more occasions or has entered NAP and then bankruptcy in subsequent years, the record of their entry to each of their insolvency procedures will remain on the Insolvency Register permanently.
- The period of a NAP can be extended by up to 25 working days where the Official Assignee receives an objection or information from a creditor and other interested parties about a debtor’s entry to the NAP shortly before the expected discharge date.
- The insolvent gift provisions in the Insolvency Act 2006 have been strengthened to prevent creditors from being deprived of assets that could be used to repay their debts.
- Making it clearer that insolvent debtors that enter NAP will not have their fraudulently obtained debts extinguished upon discharge.
For further information about the change, please read the Insolvency Insight section of our website.
