Statue of Justice with scales in lawyer office. Legal law, advice and justice concept
No Comments

The handcuffs are on debt recovery, but for how long? What you can do in the meantime…

By Jeffrey Brown, Principal at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

As part of the Federal Government’s response to the COVD-19 crisis, a handbrake has effectively been applied to court proceedings aimed at bankrupting individuals and placing companies into liquidation. This has been achieved by lengthening the time for debtors to respond to formal demands, from 21 days to 6 months, for both bankruptcy notices (in the case of individuals) and statutory demands (for payment of debts incurred by companies). As part of the same reforms, the minimum debt amount that can be the subject of bankruptcy or winding up proceedings has been increased to $20,000.00. [...]  READ MORE →

Winding Up
No Comments

Model Behaviour: the Australian version of America’s Chapter 11 Bankruptcy Scheme – Trustees & Creditors

By Jodie Rodrigues, solicitor at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

On 24 September 2020, the latest instalment in Australia’s insolvency reforms was announced. These reforms have been branded “the most significant reforms to Australia’s insolvency framework in 30 years”.

For information about the proposed insolvency regulations, read Part 1 of this blog here.

 The proposed scheme has been developed to provide relief to small business in light of the economic impact of the coronavirus by way of the additional debt taken on to survive. However, the impact of the proposed mechanisms is wide reaching, and particularly in circumstances where no draft legislation has been released, no consultation has been undertaken, and the plan is to have these amendments in place by 1 January 2021, the reforms may be hazardous for creditors and insolvency practitioners. Read on to find how the insolvency reform will affect you.
 [...]  READ MORE →

Winding Up
No Comments

Model Behaviour: the Australian version of America’s Chapter 11 Bankruptcy Scheme – Key Points

By Jodie Rodrigues, solicitor at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

Part 1: The Key Points

On 24 September 2020, the latest instalment in Australia’s insolvency reforms was announced. These reforms have been branded “the most significant reforms to Australia’s insolvency framework in 30 years”.

And yet the plan, apparently, is to have these reforms in place in 3 months.

Under the Morrison government’s proposal, Australia would adopt a framework modeled on parts of Chapter 11 of America’s Bankruptcy Code. The proposed system would provide two alternative forms of insolvency administration for small businesses with liabilities of up to $1,000,000: [...]  READ MORE →

No Comments

Tougher Labour Market Testing and Nomination requirements due to COVID

New! Tougher Labour Market Testing and Nomination requirements due to COVID

The Australian Government has recently taken steps to protect job opportunities for Australians in response to the COVID-19 pandemic and fill gaps in critical sectors.

New Rules

As a result, current labour market testing requirements(LMT) have been enhanced to ensure that Australian workers are prioritised for job opportunities in Australia.

Specifically, a new legislative instrument has been introduced and requires any future nominated positions to be advertised on the Government’s Jobactive website. [...]  READ MORE →

8
No Comments

How has Covid-19 affected Family Law Mediation?

Family Law Mediation is used by parties as a way of trying to resolve or reduce the number of issues in a family law dispute with the assistance of a mediator. The benefits of family law mediation are far reaching particularly when parties are able to avoid the considerable costs, time and stress associated with Court proceedings.

The onset of the pandemic saw parties, legal practitioners and even the Court having to quickly adapt to online and electronic means in addressing disputes. Family law mediations have been no different and in fact have proven to be a useful pathway to resolving matters over the online platform. [...]  READ MORE →

climbing
No Comments

Insolvency Relief Extended until New Years!

By Hayley Hitch, an Associate of Matthews Folbigg Lawyers in our Insolvency, Restructuring and Debt Recovery Group

The Morrison Government earlier this year introduced the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) which came into effect on 25 March 2020 to provide relief to individuals and entities under the Corporations Act 2001 (Cth), Bankruptcy Act 1966 (Cth) and supporting legislation. These changes were due to expire on 25 September 2020, where the legislation was expected to revert back to its former position where, for example, statutory demands and bankruptcy notices required a 21 day response period. [...]  READ MORE →

sign-1533655
No Comments

Danger – COVID-19 Safe Harbour Flaw Requires URGENT External Administrator Appointment

A fatal flaw exists in the government’s COVD-19 safe harbour legislation. This means directors must appoint an external administrator to their company on or before 24 September 2020, if they wish to take advantage of the COVID-19 safe harbour protection from insolvent trading.

At the beginning of the global pandemic the Australian Federal Government introduced temporary legislation to protect directors from liability for insolvent trading during the global COVID-19 pandemic. This safe harbour protection from insolvent trading will excuse directors for liabilty in respect of debts incurred in the ‘ordinary course of business’ during the operation of the temporary legislation, presently due to expire at the end of 24 September 2020. [...]  READ MORE →

11
No Comments

Debt Collection Sydney – Statutory Demands and the Expiration of the Coronavirus Economic Response Package Omnibus Act 2020 amendments

As a result of the COVID-19 pandemic, the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) was introduced, which resulted in various temporary changes to the Corporations Act 2001 (Cth) and Corporations Regulations 2001 (Cth) in respect of statutory demands.

These temporary changes include extending the time period for a company to respond to a statutory demand from 21 days to six months, and increasing the monetary threshold for a creditor to issue a statutory demand from $2,000 to $20,000. [...]  READ MORE →

Conceptual image of family sneakers shoes in father mother and baby sizes on grass in beautiful autumn sunset light for togetherness Happy Family Expecting young parents and outdoors lifestyle.
No Comments

Is COVID-19 a reasonable excuse to withhold a child from a parent? A Family Law Lawyers Answer

A common question asked of family law lawyers in 2020 is: “do I have to continue following parenting Orders during the pandemic?”  There are very limited circumstances in which the Court will permit parents to fail to comply with Orders of the Court.

Parents will need to establish that there is a reasonable excuse for not complying. Whether the action or conduct is needed and necessary to protect the child should be considered.

In a recent case of Pandell & Walburg (No 2) the Court considered the circumstances of  COVID-19 and how it relates to reasonable excuse. [...]  READ MORE →

16
No Comments

The Move to an Online Family Court: How Covid-19 has Influenced the Way Divorce Lawyers Represent their Clients

The prevalence of Covid-19, the coronavirus, has catapulted the Family Courts into rapid digital transformation. At first, the Courts began to switch from face-to-face court events to telephone conferences on a dial in basis. By the beginning of April, the Courts began to conduct Hearings by Microsoft Teams, a program that allows video conferencing so that parties, their divorce lawyers and judicial officers may all see each other in a “virtual courtroom”.

Alongside the transition to online Court hearings was the introduction of the Digital Court File. Previously, parties and their divorce lawyers had the option to file court documents in hard copy, particularly if the matter was urgent. This system proved challenging during the pandemic particularly for Judges and Registrars operating from remote locations. To allow matters to be heard in any location during the pandemic, every new Court file is now completely electronic and able to be downloaded using the Court portal. [...]  READ MORE →

Insurance agent holds hands near the family. The concept of insurance of family life and property. Family care and helping hand concept. Health insurance. Health care. Security and Property Protection
No Comments

What Does the Closing of the NSW-Victoria Border mean for my Family Law Matter?

The NSW Law Society published a COVID-19 update on 9 July 2020 providing some guidance to families and family law lawyers about the re-closing of the border between NSW and Victoria. The update is as follows:
With NSW-Victoria border closures in place, it’s expected that parties should cooperate and ensure the best interests of the child are addressed by complying with court orders. If strict adherence to parenting orders is not possible, it is imperative that any revised arrangements reflect the spirit of the orders. The Courts have previously issued information in relation to parenting issues that may be of assistance including: [...]  READ MORE →

No Comments

Difficulties due to COVID-19 not an excuse to vacate a hearing date

A recent decision in the Land and Environment Court to set aside a Registrar’s order that a three-day hearing be set aside substantially due to the difficulties associated with the COVID-19 pandemic has shown the Court’s willingness to facilitate the continuation of hearings, where appropriate, despite the difficulties associated with virtual hearings.

In DVCI Pty Ltd v City of Parramatta Council [2020] NSWLEC 31, during a general call over of all matters pursuant to the Court’s adoption of the COVID-19 Pandemic Arrangements Policy, the solicitor for the City of Parramatta Council sought an order that the hearing the subject of the Class 1 Appeal, scheduled to take place in May 2020, be vacated. [...]  READ MORE →