If you are owed money by a bankrupt or someone who will not repay you, then you may be able to recover the debt through the Bankruptcy Act. At Aitken Whyte Lawyers we provide full services in relation to debt recovery, and bankruptcy of the debtor may be a suitable avenue for you.
If you are a creditor of an individual (rather than a company) that is unable to pay the debt they owe you, that individual becoming bankrupt may be advantageous for you. After a debtor becomes bankrupt, a trustee in bankruptcy is appointed. This trustee receives all of the bankrupt’s property that is legally able to be divided amongst creditors. Aitken Whyte can provide bankruptcy advice to assist you in reaching this stage.
Debtors themselves can voluntarily enter into bankruptcy. There are distinct advantages and disadvantages of doing so, and these will depend on your circumstances. Aitken Whyte can advise as to the legal implications of this, and what it means for both creditors and debtors. The law itself is designed to assist debtors in considering their options, as they can enter into a 21 day period where creditors cannot enforce debts and the debtor can decide on a course of action. The debtor must present a debtor’s petition, and becomes voluntarily bankrupt once the Official Receiver endorses that petition.
Bankruptcy can also be forced upon a debtor by a creditor’s petition. These most commonly arise when a bankruptcy notice, after the creditor has obtained final court judgment has still not been paid, is also not complied with. If the debt is at least $5,000, bankruptcy notices are one of the specified ‘acts of bankruptcy’ that can entitle creditors to bring a petition. This petition will then seek a sequestration order which, if granted, will make the debtor bankrupt.
The laws surrounding bankruptcy can be complex and difficult. There are advantages and disadvantages, on both sides, to pursuing bankruptcy. In the event of bankruptcy, the legal rights of creditors will also change. Creditors can no longer attempt to enforce their debts against a bankrupt individual and will only be entitled to receive a part of the debtor’s assets.
At Aitken Whyte we can advise and assist with this process. We will weigh your options and discuss how to achieve the best possible outcome for you. We will conduct your matter for you, from drafting bankruptcy notices and petitions, to appearing in the Federal Court.
Aitken Whyte Lawyers
Level 6, 9 Lawson St, Southport
Ph: +617 5596 9099