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We are a firm
dedicated to helping
companies, businesses
and individuals through
financially difficult
times. | | |
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Individual - Personal Bankruptcy |
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If you are unable to pay your debts and cannot come to suitable repayment arrangements with your creditors, you may voluntarily petition to become bankrupt. At the time of petitioning, you must be present in Australia or otherwise have an Australian connection (eg you ordinarily live in Australia or are involved with a business operating in Australia).
Creditors can also apply to the court to make you bankrupt if they can satisfy the court that you owe them money above a minimum amount.
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Bankruptcy generally lasts for a period of three years but can be extended in certain circumstances. There is a permanent record of your bankruptcy on the National Personal Insolvency Index (an electronic public register which can be accessed by anyone for a fee).
Your creditors are notified of your bankruptcy and unsecured creditors should stop pursuing you for payment of your debts.
A trustee will be appointed to your case. In order to pay your creditors, this trustee will:
- sell your assets (although you will be able to keep certain types of assets)
- mandate contributions from your income once you earn over a certain amount
- investigate your financial affairs and may recover property or money that you have transferred to someone else for inadequate consideration
The duties of a trustee are specified in legislation and trustees have to adhere to certain standards while administering your estate. You can choose to appoint a registered trustee by obtaining and providing their consent when you lodge your petition to become bankrupt. If you do not choose a trustee, the Official Trustee (ITSA) is initially appointed to administer your estate. Your creditors may choose to change the trustee at any time.
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If you have any questions please feel free to call us! | | |
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