How we can help you
If you’re struggling to repay your debts, you may be wondering what options are available to you. Bankruptcy and corporate insolvency laws can be complex, so it’s important to understand the ins and outs of each option.
We’ll provide an overview of bankruptcy and corporate insolvency law as well as discuss the benefits and drawbacks of each option, so you can make an informed decision about what’s best for your situation.
Manage personal or corporate insolvency effectively.
Your trusted partner
Bankruptcy is a legal process that allows people who can’t repay their debts to give control of their money to someone else. They do this because they can’t afford to pay back all of the money they owe. The third-party who assumes control of the debtor’s financial affairs is either an appropriately licensed trustee or the Official Receiver, appointed either by the Federal Court or the Australian Financial Security Authority (AFSA).
What is the process for declaring bankruptcy?
A party may go bankrupt in one of two ways:
Bankruptcy by Debtor’s Petition: the person who is in financial difficulty voluntarily lodges a petition (that is, an application on a particular form) to the Official Receiver for their own bankruptcy. The petition is the debtor’s way of seeking relief from unmanageable debt through bankruptcy.
Bankruptcy by Creditor’s Petition: if a creditor is owed $10,000.00 or more they may be able to apply to the Court to have the debtor made bankrupt. A creditor needs to prove that the debtor has committed an ‘act of bankruptcy’ within the six months prior to the application. The creditor must file a creditor’s petition in the Federal Court seeking an order that the debtor be declared bankrupt (a sequestration order) which makes the person bankrupt.
How long does bankruptcy last?
After the day on which a debtor’s petition is accepted by the Official Receiver, a person remains bankrupt for three years. The three-year period of bankruptcy commences after the Statement of Affairs is submitted to AFSA in the case of bankruptcy caused by the issuing of a sequestration order. Please note there may be different effects based on your individual insolvency matters that vary between voluntary administration, company arrangement, or court orders so we recommend speaking with an insolvency law expert to confirm how each solution could affect you.
What are the effects of bankruptcy?
When you are made bankrupt, certain restrictions and obligations are placed on you. These are called the ‘effects of bankruptcy’. The main effect is that your property vests in a trustee who then administers it for the benefit of your creditors. This includes any real estate you own (other than your principal place of residence), motor vehicles (excluding property used primarily for transport), shares, cash that the bankrupt holds in-person and other valuables.
These restrictions are designed to protect your creditors by ensuring that you cannot act in a way that is unfair to them.
Declaring bankruptcy, or even contemplating it, is a daunting and stressful experience to be in. It might be difficult to navigate all of the various elements involved in a bankruptcy proceeding.
We have expertise in bankruptcy, litigation, and commercial law, so we can explain the complexities of insolvency law to you. We can assist you through the Court route to help you achieve your desired outcome.
We may take immediate action against a debtor firm to reduce the amount of time it takes them to pay off their debts. If your business is owed money, there are various methods for recovering it. Talk with us about how we can get you your cash as quickly as possible.
There are strict time restrictions in place for replying to a creditor’s statutory demand. Failing to comply may have a severe negative impact on your company. If you’ve been served with a statutory demand, you must act right away. Contact us if you disagree with the debt (or part of the debt) or have a cross-claim. We can help you file the necessary paperwork to have the demand set aside.
Why Choose Victor Legal’s Insolvency Lawyers?
Our Brisbane insolvency lawyers offer a comprehensive range of corporate insolvency services. We can handle anything from the preliminary consultation to drafting and implementing your business rehabilitation strategy with expertise.
- Wind up a company on grounds of insolvency
- Apply to set aside a statutory demand
- Assist with voluntary liquidations
- Assist with a simplified liquidation process
- Defend a director against a personal liability claim for insolvent trading
- Apply to set aside a statutory demand
What our clients are saying…
We have found both John and Sherry to be firstly super efficient, but in our opinion which is extremely important to us, possess the utmost of integrity and just overall helpfulness & friendliness.
Thank you John for the prompt and professional service. I would highly recommend the Firm and would definitely be contacting for any further legal matters in the future.
I rang John one Saturday about a legal matter and wow, he was so professional, caring, understanding and really listened to my enquiry.
John is a committed lawyer who helped me obtain a positive outcome in my affairs. I have no problems recommending John and will continue to use him if and when the need arises.
J J Christian
John Christian in particular is very professional and caring, looks after his client. He has a solid knowledge/expertise in the area of sale and purchase agreements.
Anonymous (via FirmChecker)
Simplify and Solve Your Legal Matters
If you require legal support, let’s make it as seamless and straightforward as possible. Get in touch with our team today to arrange your free ten-minute phone consultation.request a call-back