News and Resources > End to COVID-19 Insolvency Protections a Win for Creditors

End to COVID-19 Insolvency Protections a Win for Creditors

On 1 January 2021, new insolvency reforms to support small business commenced and COVID-19 temporary insolvency protections came to an end.

This is good news for creditors who can now more easily proceed with creditor’s statutory demands in the usual course as well as bankruptcy notices, provided company debtors have not applied for temporary relief.

Back to the Future

Creditor’s statutory demands

As at 1 January 2021:

  1. the threshold to issue a statutory demand is now $2,000; and
  2. the timeframe for debtors to respond to a statutory demand is now 21 days.

Bankruptcy notices

As at 1 January 2021, the following changes have been made:

  1.  the debt threshold is now $10,000;
  2. the timeframe for debtors to respond to a bankruptcy notice has been reduced from six months to 21 days; and
  3.  the temporary debt protection period has been reduced from six months to 21 days.

For consultations, please call us on 1300 757 534 or send us a message.

Take Action Now

On 28 March 2021, the JobKeeper Payment scheme is set to conclude and it is expected that there will be a gradual relaxation of the temporary relief which has been provided by financial institutions.

Whilst we have not yet seen the forecasted tsunami of insolvencies, the true effects of COVID-19 and how these will be felt by many industries following March 2021 remain to be seen.

Proactive recovery action and the utilisation of risk mitigation strategies now will result in a reduction of potential disputes and ensure fruitful recoveries in the future.

You do not want to be left standing behind a conga line of other creditors.

Small Business Insolvency Reforms

The small business insolvency reforms, which commenced on 1 January 2021, allow eligible small businesses to utilise either a “debtor in possession” restructuring process, or, where businesses enter a creditor’s voluntary winding up, a simplified liquidation process.

Creditors should be aware that eligible small businesses may declare their intention to appoint a restructuring practitioner until 31 March 2021, where they will be afforded up to three months temporary relief from insolvent trading liability and enjoy continued access to the COVID-19 protections for statutory demands ($20,000 statutory limit and 6 months to comply).

For the relief to apply, directors must lodge their intention with ASIC, and have the notice published on the ASIC published notices website.

It is too early to determine the impact of the new restructuring process and simplified liquidations; however, creditors should be aware of their obligations and rights under the new processes and be conscious of the ability for businesses to access further temporary protections until 31 March 2021.

Contact us – We are here to help
If you need legal advice or representation of specialist commercial lawyers concerning a case involving your business, please contact our team at Results Legal on 1300 757 534 or use our contact form to send us a message.

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Robert Shepley promoted to Principal at Results Legal.

Robert Shelpley - Special counsel at Results Legal, wearing a suit and smiling at the camera.

Results Legal proudly announces the promotion of Special Counsel Robert Shepley to Principal, effective January 1st, 2024.

Head of the firm’s commercial division, Rob is a seasoned corporate and commercial lawyer with a special interest in business transactions and commercial contracts.

“Promoting Rob to Principal was a natural progression given the expertise, leadership and experience he has brought to our firm since joining Results Legal as Special Counsel,” said Managing Director Karl Hill.

Since joining Results Legal in 2023, Rob has been a key contributor to the expansion of its Commercial division, bolstering the firm’s commercial and corporate law expertise

2024 Hill Family Scholarship Award Winner Announced

2024 Hill Family Scholarship Award Winner Announced

A dedicated student from Mackay State High School was today announced as the recipient of the 2024 Hill Family Scholarship. Valued at $5,000, the scholarship provides vital financial support to one deserving student embarking on their tertiary education journey in law, accounting, or commerce.

Year 12 student Ned Gething from Sunnyside (Mackay) won the scholarship thanks to his leadership qualities, academic achievements and commitment to pursuing a career in law.

“Access to the Hill Family Scholarship means I can place a greater focus on my studies, rather than worrying about where the money for textbooks or costs of living away

Beyond Legal Practice: Results Legal’s Approach for Exceptional Client Service

Beyond Legal Practice: Results Legal's Approach for Exceptional Client Service
In a recent video, Results Legal Managing Director, Karl Hill, shared insights into the firm’s philosophy and approach to commercial litigation. With 15 years of national service across diverse industries, Results Legal aims to redefine the legal landscape by prioritising client needs and delivering exceptional outcomes.

Results Legal was born out of a desire to refocus on clients and their business decisions.

A key emphasis in the Results Legal way is providing clarity and certainty.  Hill highlights the challenge of making business decisions when legal costs are unpredictable. While outcomes can’t always be guaranteed, Results Legal commits to offering clients

Results Legal: New Brand Explained [Video]

Professional Advisors

We recently celebrated our 15-year milestone with the launch of a new brand and website.

This short video provides context to our new brand and the meaning behind our new byline ‘We stand for you.’

It reflects the fact we work as one team to deliver not only great results, but also a great experience for our clients.

While we are a leading commercial litigation, insolvency and debt recovery firm, the way we do things is different.

We apply a client centric approach, backed by a commitment to delivering strategic clarity, fee transparency and pragmatic, commercial advice.

2023 Hill Family Scholarship Winner Announced

2023 Hill Family Scholarship Winner Announced

In what our MD Karl Hill said was one of his favourite moments of the year, he and his wife Sarah returned to their alma mater to present the Hill Family Scholarship.

Karl and his wife Sarah established the $5000 scholarship in 2021 to assist students hoping to study law, accounting or commerce with expenses such as accommodation, textbooks, day to day living and travel costs.

Celebrating Our Principal Promotions

Celebrating Our Principal Promotions

We at Results Legal live by the ‘work hard, play hard’ mantra. So when two of our graduate intake lawyers were promoted to Principal (in 6 ½ years – a exceptional achievement), we thought it was well worth gathering the team and our Brisbane-based clients for a celebration!

Announcing Our 2022 Associate Promotions

Announcing Our 2022 Associate Promotions

We are pleased to announce the recent promotion of Charlotte Evans and Kate Molkentin to Associates.

Over the course of last financial year, Charlotte and Kate achieved outstanding results for their clients and contributed to the continued growth of the firm.

Results Legal Founds Scholarship Program to Support Regional QLD Students

Results Legal Founds Scholarship Program to Support Regional QLD Students

Results Legal Managing Director, Karl Hill and his wife Sarah Hill announce the first recipient winner of the Hill Family Scholarship Program.  

As former students at Mackay State High School, Karl and Sarah Hill were delighted to return to award recipient winner, Pushti Shah with her scholarship certificate. 

82 years on, the ‘wives special equity’ law is still a valuable case to call on

82 years on, the ‘wives special equity’ law is still a valuable case to call on

On 15 September 2021, the District Court of New South Wales handed down a judgment in Hume Plasterboards v Best Interiors[1] which reaffirmed the ‘wives’ special equity’, otherwise known as the Yerkey v Jones[2] defence. Even though the ‘wife’ (or de facto partner) of the company’s director signed a guarantee, the successful use of the defence meant that she was not liable for the debt incurred.