EXPLANATORY STATEMENT
Subject- Bankruptcy Legislation Amendment Act 2010
Proclamation
Subsection 2(1) of the Bankruptcy Legislation Amendment Act 2010 (the Act) provides, in part, that Schedules 1 and 2 and Part 2 of Schedule 4 to the Act will commence on a day to be fixed by Proclamation. However, if any of those provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. The Act received the Royal Assent on 14 July 2010.
The purpose of the Proclamation is to fix 1 December 2010 as the day on which Schedules 1 and 2 and Part 2 of Schedule 4 to the Act commence.
The Act amends the Bankruptcy Act 1966 to modernise the national personal insolvency system and to make it more efficient.
Schedule 1 to the Act introduces a clearer regime for fixing and reviewing the remuneration of registered trustees.
Schedule 2 to the Act contains amendments relating to offences. The amendments strengthen the penalties for some offences to ensure consistency with similar offences, introduce an infringement notice regime as an alternative to prosecution for offences of strict liability, and provide stronger powers to the Inspector-General in Bankruptcy to investigate possible offences under the Act and to obtain a statement of affairs from a bankrupt who fails to file this as required.
Part 2 of Schedule 4 to the Act increases the stay period that follows a declaration of intent to file a debtor’s petition, to allow debtors to better assess their options, and requires a debtor to file a statement of the debtor’s affairs together with this declaration.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.