Personal Insolvency

Bankruptcy for Individuals

What is Bankruptcy?

Bankruptcy is the legal process that controls the affairs of those who are insolvent meaning those people who are unable to pay all their debts as they are due. However it is important to note that bankruptcy is not the inevitable result of all those who become insolvent. Bankruptcy is usually administered by the office of the Inspector General in Bankruptcy and if it does occur it usually last for three years.

There are two ways that a person can become bankrupt:

1. Involuntary bankruptcy through a sequestration order- which is made by the court on the application of a creditor which means that the debtor becomes bankrupt.

2. Voluntary bankruptcy- this is where the debtor presents the Official Receiver with a petition and if there is no pending application by a creditor to bankrupt the debtor and if the petition is accepted, the person becomes bankrupt.

Are there any alternatives for an insolvent individual?

Yes there are a number of options of which we can help you with, the options are:

• To avoid creditors;

• Come to a private informal arrangement with individuals creditors;

• Come to a private agreement with creditors;

• Enter into a private agreement or

• To propose a debt agreement

The benefits of bankruptcy for the bankrupt are:

• That the burden of the debt is removed;

• Can start again after the bankruptcy and

• It is possible to have early discharge or arrangement with creditors

What is involved in Voluntary Bankruptcy?

For detailed information about the Bankruptcy process, click here:

Our dedicated team consists of bankruptcy specialists who can assist you with all your bankruptcy needs. Complete and submit the Express Enquiry form on the top right hand side of this page and we will contact you to discuss your enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.