The Greens will seek to disallow the recently introduced $120 bankruptcy filing fee when the Senate returns in May. The new fee was introduced by the Australian Financial Security Authority and came into effect on April 1st and was approved by Attorney General Senator George Brandis QC. It should also be noted that a fee of $150 for the lodgement of requests by undischarged bankrupts whose bankruptcy is being administered by the Official Trustee, for permission to travel overseas was also introduced.
Australian Greens spokesperson for legal affairs Senator Penny Wright said the fee would be a barrier stopping people in dire financial trouble from getting the help they need to get out of debt and have a fresh start.
“It defies reason to require people who are in the worst kind of financial trouble to pay a fee to go bankrupt,” Senator Wright said. “The Australian Greens will be lodging a disallowance motion when Parliament returns in May, to protect vulnerable Australians.”
“This fee is ironic in the extreme. People will be too poor to go bankrupt, which is a perverse outcome. Financial counsellors see people who have literally just a gold coin in their pockets when they file for bankruptcy. If people can’t afford the fee, they will either remain trapped in debt or ask charities to pay the fee for them. All that will do is shift the cost burden to the community sector.” Fiona Guthrie, Executive Officer of Financial Counselling Australia commented.
“The fee would leave people stranded – they won’t be able to go bankrupt and will have no option but to wait for a creditor to do it, taking away their control and adding to their stress.” Senator Wright Said “It’s unacceptable to leave low income, vulnerable people in this stressful situation.”
