Lost in my translation – correction to bankruptcy trustee remuneration statistics
AFSA has properly drawn to my attention that figures I have given about the remuneration of bankruptcy trustees have not been correct, or correctly explained from its figures. This seeks to redress and correct that. As AFSA explains, its Report, Registered trustee remuneration in the personal insolvency system, did not say, as I have recounted, […]
New Zealand’s COVID-19 insolvency measures – safe harbour; debt hibernation
The New Zealand Government has announced it will be introducing legislation to make changes to the Companies Act to help companies facing insolvency due to COVID-19 to remain viable and retain employment. In addition, the government is deferring commencement of NZ’s new insolvency practitioner licensing legislation, which was to commence in July 2020, for up […]
Latest corporate insolvency update in Australia
Apart from its interest to Australian liquidators and bankruptcy trustees, the latest Corporate Insolvency Update[1] of the corporate insolvency regulator, ASIC, will be of interest internationally given the common COVID-19 issues we are all facing. To initially explain the tone and content of ASIC’s bulletin, Australia has a bifurcated insolvency system,[2] with the Corporations Act […]
Case adjourned for COVID-19 health and property value concerns
A son’s claim under the ACT Family Provision Act 1969 sought a life interest in property of his deceased mother, which had been left to his sister, her daughter. He applied to adjourn the 30 March 2020 hearing for reasons to do with COVID-19. The background to the dispute is complicated and the subject of […]
Australia’s new fortnightly ‘COVID-19’ personal insolvency statistics
The Australian bankruptcy trustee and regulator AFSA has started to release fortnightly statistics on personal insolvencies in Australia[1] to assist in monitoring the economic and social impact of COVID-19, and the recent bankruptcy law changes made in response to the crisis. This is a commendable and prompt contribution which will inform any needed law and […]
‘Unhappy’ delay in an insolvent winding up
A NSW Judge was ‘unhappy’ about delay in a solvency report being prepared for the defendant, in response to what had become a creditor’s ‘aged’ winding up application based on the defendant’s non-compliance with a winding up demand. On an application for a further adjournment, to 15 June 2020, the Judge described the variable evidence […]
Reform of insolvency communications by email, and beyond
Corporate insolvency law in Australia concerning communications with creditors needs modernising, and well beyond what is available in 2020. When early cars, then termed locomotives, were first allowed on the road England’s ‘Red Flag Act’ of 1865 required a man with a red flag to walk ‘60 yards’ ahead to alert ‘the Riders and Drivers […]
ARITA’s ‘bushfire and COVID-19’ request to government for funding
ARITA – the main Australian industry body representing insolvency practitioners and lawyers – has asked the government[1] for funding to enable it to address various issues in corporate insolvency highlighted by the current crisis. ARITA raises aspects of long held concerns[2] of myself and Professor Jason Harris which we raised again this week, our views […]
Managing the insolvency curve – a new government role is needed?
There is expected to be a wave of businesses and individuals going into liquidation or bankruptcy despite the huge financial measures being taken by the government. These insolvencies will occur despite the recent measures limiting the rights of creditors to bring insolvency proceedings, and despite the additional safe harbour protection from insolvent trading for company […]
Just when we have some creditor activism in insolvencies …
Will the current extreme crisis we confront finally stir insolvency creditor activism, but in the wrong way? or further dampen it? Just as the drum continued to be beaten on the problem of creditor disengagement in insolvencies and an article appears offering glimmers of creditor activism arising, the government has responded to the extreme economic […]