Bankruptcy

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We provide a free, confidential 30 minute consultation to assist you in considering your circumstances with respect to your potential bankruptcy.

Bankruptcy is a legal process where a trustee in bankruptcy is appointed to administer your financial affairs for 3 years (unless extended), including:

  • identifying and gathering your ‘divisible’ assets;

  • identifying your creditors; and

  • making a distribution of your ‘divisible’ assets to your unsecured creditors.

A trustee can be appointed by you, the court or a creditor under certain circumstances.  Although it is generally advisable to avoid bankruptcy (if possible), it is important to remember that your financial circumstances may mean that the benefits of bankruptcy may outweigh the detriments.

It may be possible for you to avoid bankruptcy by taking advantage of entering into a formal Debt Agreement or a Personal Insolvency Agreement under the Bankruptcy Act 1966 (“Act”).  We may also be able to assist you avoid a formal legal process by negotiating a commercial agreement with your creditors, particularly if you have one or two major creditors that are commercially sophisticated entities such as banks.

We will be able to assist you by:

  • advising you with respect to the consequences of bankruptcy in your specific circumstances, including with respect to your employment, legal action against you or commenced by you and specific asset about which you may be concerned and general restrictions imposed on you;

  • negotiating with your creditors to attempt to avoid bankruptcy, including through a commercial agreement, formal Debt Agreement or Personal Insolvency Agreement under the Act;

  • advising you with respect to minimising the assets that may become part of the bankruptcy (e.g. taking steps to avoid future inheritance becoming vested in your trustee in bankruptcy);

  • advising you with respect to the process of bankruptcy and specific consequences relating to your financial affairs;

  • assisting you in appointing a trustee in bankruptcy;

  • liaising with your trustee in bankruptcy with respect to your disclosure and compliance obligations; and

  • assisting you in seeking to set aside or annul a bankruptcy.