Aug 13

Understand the role of a Trustee in Bankruptcy

Vesting of property Any property belonging to the bankrupt at the date of bankruptcy automatically vests in the Trustee in Bankruptcy (Section 58 of the Bankruptcy Act). Trustee to take possession of property A Trustee in Bankruptcy must take control of the bankrupt’s property including any books and records of the bankrupt (Section 129 of […]

Aug 13

How do I become bankrupt?

You can become bankrupt in several ways, either by your voluntary application (debtor’s petition) by application of your creditors (creditor’s petition) Voluntary appointment (debtor’s petition) You can voluntarily lodge a debtor’s petition with the Official Receiver of AFSA if you are insolvent (Section 55 of the Bankruptcy Act). The Official Receiver may reject a debtor’s […]

Mar 13

Bankruptcy Act stipulates statutory thresholds

The Bankruptcy Act stipulates statutory thresholds on income, assets and unsecured debts for the different products: Bankruptcy Debt Agreement Personal Insolvency Agreement Bankruptcy Bankruptcy does not have any eligibility thresholds or criteria, however, bankruptcy does have statutory limits for assets which a bankrupt can retain and thresholds on income before statutory income contributions become payable. […]

Mar 12

AFSA Bankruptcy Statistics 2008/2009

The Insolvency Trustee Service Australia has released the 2008/2009 Personal Insolvency Statistics. The statistics reveal the following: 11% annual increase in total

Feb 21

Insolvent Debtor

An insolvent debtor means somebody that cannot pay their debts as and when they fall due. Some typically signs of insolvency may include: Cannot afford minimum repayments for all debts; or Somebody with many accounts in arrears; or Debts have been transferred to collection agents; or Debts have been referred to the courts for collection; […]

Feb 18

Transactions to Defeat Creditors

If a person enters into a transaction (prior to becoming bankrupt) with the prime purpose of the transaction is to defeat creditors (ie keep the money or property out of the reach of their creditors) then in certain circumstances the transaction (after bankruptcy) can be set aside by the Bankruptcy Trustee. There is no time […]

Feb 18

Preference Payments

Preferences are payments or transfers that may be recovered by a Bankruptcy Trustee, in other words you must first become bankrupt before your Trustee could seek to recover any preference payment from any of your creditors. Only payments can be recovered where it can be established that the creditor received a preference or advantage over […]

Feb 16

Statement of Affairs

When you become bankrupt you will need to complete a Statement of Affairs. If you do not complete a Statement of Affairs you will be bankrupt indefinitely. A Statement of Affairs is a summary of the financial position and person details. The financial position will include: details on your Assets details on your liabilities income […]

Feb 16

8 year Bankruptcy

Learn how your bankruptcy term can be extended for up to 8 years (ie extended by 5 years from the standard 3 year bankruptcy time period). A Trustee in Bankruptcy is entitled to extend a bankrupt’s term of bankruptcy to 8 years if any of the following requirements are contravened: you entered into a transaction […]

Feb 16

5 year Bankruptcy

Learn how your bankruptcy term can be extended for up to 5 years (ie extended by 2 years from the standard 3 year bankruptcy time period). A Trustee in Bankruptcy is entitled to extend a bankrupt’s term of bankruptcy to 5 years if any of the following requirements are contravened: when bankrupt, you left Australia […]