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Bankruptcy usually occurs when an individual cannot pay their debts when they are due. An individual can file for bankruptcy themselves or be made bankrupt by an order of the Court, filed by a creditor who is owed $10,000 or more by a debtor and the debtor has failed to satisfy a Bankruptcy Notice.

Introduction to Personal Insolvency and Bankruptcy Process

The Trustee's role is to realise the bankrupt's divisible assets, investigate the bankrupt's examinable affairs, recover any voidable transactions identified, report to creditors and distribute any surplus funds, after paying the costs of administering the bankrupt estate, to creditors in the form of a dividend.

The Role of the Trustee in Bankruptcy

The Trustee in Bankruptcy will realise the bankrupt's divisible assets, both at the time of bankruptcy or acquired during the period of bankruptcy, any transactions which are voidable by the Trustee, for example, a transfer of the bankrupt's assets for no consideration, and any income earned by a bankrupt durung the period of bankruptcy, over a certain threshold.

Realisation of Assets and Income Contributions

A bankrupt is obligated to provide their Trustee with information and documentation evidencing their assets, income, creditors and examinable affairs, details of any change of name or address during the bankruptcy period and submit a Bankruptcy Form/Statement of Affairs. Failure to provide same may result in penalties, including an extension of the bankruptcy period.

Obligations of a Bankrupt

Restrictions a bankrupt may face during the period of bankruptcy include owning a motor vehicle or tools of trade up to a statutory threshold, restrictions in travelling oiverseas without the Trustee's permission and the inability to manage a corporation whilst bankrupt.

Restrictions on a Bankrupt

A bankrupt will remain bankrupt for a period of three years from the acceptance of the bankrupt's Bankruptcy Form/Statement of Affairs, subject to penalties imposed for failure to comply with the bankrupt's obligations, which can extend the period of bankruptcy to up to eight years. A bankruptcy can be completed earlier through an annulment or composition.

Period of Bankruptcy

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Compassionate Support for Financial Recovery

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Bankruptcy

Bankruptcy is a legal process that occurs when an individual becomes insolvent and is unable to fulfill their financial obligations. Whether initiated by creditors or the debtor themselves, our experienced team will approach each engagement in a practical and commercial manner, addressing the needs of all relevant stakeholders.

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