Bankruptcy is generally regulated by the Federal Government legislation known as the Bankruptcy Act 1966 (the ‘Act’). The Objectives of Bankruptcy includes the conducts such as,
- The distribution of the bankrupt’s property to creditors
- Liberation to the bankrupt from the difficulty of paying creditors’ debts, providing an opportunity for a fresh start;
- To make sure an independent examination is undertaken into the bankrupt’s businesses, transaction, property and affairs.
- To act in the public interest by preventing a irresponsible bankrupt from continuing to trade.
- Declaring bankrupt at times have serious implications and is best preferred to be proceed with highly qualified attorneys.
There is a substantial amount of fall-out to consider if someone is declared bankrupt. The ITSA can inform you of all your obligations and rights with the following impacts,
- Public records will hold your name for few years.
- Bankruptcy lasts for a minimum of three years it may be extended.
- Any Asset (s) will be delivered to your trustee to be sold to pay your creditors.
- Asserts acquired during bankruptcy may go to your trustee to pay creditors.
- Banks may refuse to let you operate an account or may restrict it
- You need court permission to be a director of a company, or be involved in the management of a company & lot more factors affect your lifestyle.
Alternatives to Bankruptcy
- Personal insolvency agreements
- Entering into a PIA
- Debt agreements
- Acceptance of personal insolvency and debt agreements
VVRS team of professionals will discuss with all stakeholders prior to the early stages of administration. We investigate every aspect and will advise appointees in relation to their statutory obligations. Our lawyers negotiate and document Deeds of Company Arrangement and Creditors’ Trust deeds.
VVRS lawyers are skilled in asset recovery and reconstruction by providing assistance to formulate the best structure for company our multi-disciplinary practice ensures that we can negotiate the terms of complex asset sales and document the transaction against a background of the insolvency administration and related fine distinction.