Business Bankruptcy Lawyers
Financial hardship is often a stressful and challenging time for anyone to deal with the prospect of having to file for personal bankruptcy or the need for debt recovery can be a confusing and complex legal area to navigate during an already difficult time.
Engaging with an expert bankruptcy lawyer is key to properly safeguarding your rights and assets when filing for bankruptcy. Whether you’re an individual overwhelmed by debts or a business contemplating the implications and requirements of a bankruptcy notice, having knowledgeable legal
assistance in this complicated area of law is vital.
If you are considering bankruptcy or have the possibility of bankruptcy looming, there are a number of options you can consider and we can guide you through that process.
What is Bankruptcy?
Bankruptcy is the legal process where you declare unable to pay your debts, and can allow you to be released from most debts. The debts that aren’t covered include:
- Court Imposed Penalties and Fines
- Child Support & Maintenance
- HECS & HELP Debts
You can enter into voluntary bankruptcy. To do this you need to complete and submit a Bankruptcy Form. It’s also possible that someone you owe money to, can make you bankrupt through a court process. Bankruptcy normally lasts for at least 3 years and 1 day. When you become bankrupt you are appointed a trustee. A trustee is a person or body who manages your bankruptcy.
Your Obligations When You Are Bankrupt
- You must provide details of your debts, income and assets to your trustee.
- Your trustee notifies your creditors that you’re bankrupt – this prevents most creditors from contacting you about your debt.
- Your trustee can sell certain assets to help pay your debts.
- You may need to make compulsory payments if your income exceeds a set amount.
What Are the Consequences of Bankruptcy?
- Bankruptcy may affect your income, employment and business. If you earn over a set amount, you may need to make payment to your trustee. Bankruptcy also may come with some restrictions on your ability to run a business and certain employment.
- It may affect your ability to travel overseas. To travel overseas, you must request permission from your trustee, and it is an offence to travel overseas without consent in writing. Your trustee can ask for further details regarding your travel to consider your request.
- Your name will permanently appear on the National Personal Insolvency Index (NPII).
- It may affect your ability to obtain future credit. When applying for credit over a set amount, your must inform the creditor of your bankruptcy. A credit reporting agency keeps a record of your bankruptcy for: 5 years from the date you became bankrupt or 2 years from when your bankruptcy ends, whichever is later. Your trustee May sell your assets.
- Besides a select few items, your trustee may sell assets, including your house and property to pay debts. You must declare any assets you have when you apply for bankruptcy and any you receive during bankruptcy. The items you are able to keep: Ordinary household goods, Tools used to earn an income, up to a set amount and Vehicles, up to a set amount.
- The consequence of your bankruptcy typically lasts the complete length of time you are bankrupt, if not longer. Typically, bankruptcy lasts 3 years and 1 day from when your bankruptcy application is accepted. However in some cases, your trustee can lodge an objection to extend the bankruptcy for up to eight years.
What to Expect when working with PB Lawyers Australia
Here are some reasons why people choose us:
- Punctual and Precise: From your first consultation until a successful solution, we will work hard to resolve your matter fast and with precision. We answer all enquiries quickly as we understand how stressful legal pressures can be. And more often than not, time is crucial, so we act promptly. Having the right lawyer in your corner is the most important aspect when dealing with legal matters, so as we are fast, we are also as experienced and thorough.
- Understanding and Perceptive: We understand that being involved in any legal matters can be stressful. So, we take the time to learn your situation and get a good grasp on all the relevant factors and use that information to work for you in the best way possible. We’re here to guide you every step of the way, we will listen to you, offer advice, answer any questions you have and ensure that you have all of the information you need to make an informed decision every time.
- Affordable and Reasonable: There is no surprise in saying that legal fees can be expensive, however, engaging a lawyer may be less expensive than you realise. Doing so will most definitely reduce the amount of stress and the amount of time in dealing with your legal matters. We offer flexible billing arrangements for our services, including event billing, time interval billing and fixed rate fees. We’ll also be transparent with you about the costs surrounding resolving your matter and provide you with a quote once we’ve had a consultation with you and understand your situation.
- Experienced and Knowledgeable: Each member of our trusted team has years of experience in the areas of law they each practice, coming from different cultural and societal backgrounds. This allows us to understand your situation more easily and work together to find the best outcomes for your situation. Like we said before, no two situations are the same, but our vast range of experience means that we can certainly help you.
Our Bankruptcy Law Solutions Include:
Assisting You Gather Relevant Documentation
Drafting Required Documents
Giving You Advice on the Best Method to Proceed
Providing a Free First Consultation
Represent You in Court
Advise Individuals on the Consequences of Bankruptcy
Assisting in Applying for Bankruptcy
Negotiate With Creditors
Organising Personal Insolvency Arrangements
Client Testimonials and Reviews
Frequently Asked Questions
Can my bankruptcy be annulled?
Annulment ends the bankruptcy prior to the standard period of 3 yrs. There are 3 ways for a bankruptcy to be annulled.
1. A bankrupt may propose a composition or arrangement to creditors to pay a portion of their debts (s73 of the Act). This is voted on by creditors and if accepted by creditors holding at least 75% of the debt the annulment will be granted.
2. Upon payment of all of the debts (s153A of the Act)
3. By the court if the court is satisfied that the sequestration order ought not to have been made (s153B of the Act)
What to do if Served with a Bankruptcy Notice?
If you are served with a bankruptcy notice, you should obtain urgent legal advice. This is because you only have 21 days to either comply with the notice or make an application to court to have it set aside. Failure to do so will result in an act of bankruptcy entitling the creditor to file a creditor’s petition, seeking a sequestration order (as discussed above under involuntary bankruptcy).
What are the rights of a bankrupt person?
The bankrupt person has rights including operating a savings bank account, traveling freely throughout Australia and acting as the executor of a deceased estate. They must, however, notify the trustee of any change of name, address or employment.
