Bankruptcy Law Changes Back to home page
On May 14, the federal Attorney-General introduced legislation to amend
the Bankruptcy Act so that:
Every Australian is put at risk of having their home and other assets
confiscated under the proposed changes.
The family of, or in fact other than family of a person made bankrupt,
for any reason whatsoever will lose all their assets, whether in the
names of family members or in the names of a company or trust.
This will be the situation if the person becoming bankrupt has provided
any assistance to family members or to the company or trust or any other
person for that matter.
It does not matter how long before bankruptcy the assistance was provided.
The government claims the justification for the changes is to prevent high-
income people using bankruptcy as a means to avoid their taxation and other
obligations. However, the scope of the proposals is much wider than that:
it will apply to everyone, small business, including farmers.
This proposed change to the Bankruptcy Act will have tremendous reper-
cussions. Nobody can consider themselves clear of the implications of
such a law, because nobody can be absolutely certain that, they or some
body who assisted them in the distant past will not fall into the bank
ruptcy trap. Banks and finance companies, for instance, bankrupt people
every day of the week, even when they were never in default of their
commitments. It is common knowledge within people experienced in this
area that certain people are targeted for bankruptcy by the establishment
for political reasons and to allow a competitor to get his hands on a
The truth is that the people who use bankruptcy to doge their obligations,
do so by making themselves bankrupt, and I agree these people need to be
caught, but the changes to the Act do not single them out for action, the
changes include everybody.
To find yourself on the wrong end of bankruptcy action can virtually
happen overnight, over a car accident, a dog bite, a house fire, all
number of things many well beyond your control. All that is required
is a claim against you that you can not meet, or now, a claim against
somebody else where you have at some time in the past had an association.
My guess is government is planning for the next down turn, which is not
far away, in fact just as soon as the financial institutions have a claim
on all the previously owned homes and businesses, where the owners have
been conned into using their collateral to buy an investment property.
Remember: history clearly shows that government is the handmaiden of
the banks and the enemy of the people.