What is Bankruptcy?
In Australia being declared bankrupt refers to the insolvency regime for individuals under the Bankruptcy Act 1966 (CTH). When a person is not able to pay their debts, as and when they fall due, they face going bankrupt.
The Bankruptcy Act regulates the legal process by which an administrator, or trustee, can be appointed to take over the financial affairs of the individuals.
There are a number of mechanisms under the Bankruptcy Act which provide for compromise agreements between individuals and their creditors.
Streeterlaw act on behalf of Creditors seeking to recover debts from individual debtors. Plus we assist Trustees in bankruptcy including the following:
- Public examinations
- Search and seizure orders
- Transfer of land
- Caveats on land
- Recovery of assets
- Seeking to recover voidable transfers or dispositions of property.
Streeterlaw bankruptcy lawyers Sydney will help you deal with bankrupt companies or companies going bankrupt. It is important that you know your rights under Australian bankruptcy law. Call the Streeterlaw team for a free no-obligation phone consultation.
The Attorney General’s Department has recently released an exposure draft of proposed amendments to the Bankruptcy Act on 25 August 2009.
There are a number of technical “restructuring” type changes proposed to be made to the Bankruptcy Act which include a restructure of the organisation of the “Districts” for Bankruptcy, a streamlined process for remuneration of trustees and increase in penalties for non-complying individuals.
One of the changes is a proposed increase of the minimum debt amount a creditor may issue a bankruptcy notice from $2,000.00 up to $10,000.00.
Bankruptcy Notices are often used as an enforcement mechanism by debt collection and debt recovery firms. Many more Bankruptcy Notices are issued than proceedings actually commenced (or sequestration orders made). In the financial year 2008/2009 there were 1953 sequestration (Bankruptcy) orders made across Australia. 1,551 were for an amount greater than $10,000.00. This means 402 of these orders would not have been made under the new proposed minimum of $10,000.00. This represent approximately 20% of the current orders made.
See also Frequently Asked Questions Bankrupt - what can and can't you do?
A full copy of the legislation amendment draft can be downloaded from this link at the Attorney General’s Department
Common miss-spellings: bankrupsy, bankruptsy
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