What is Personal Insolvency in Australia?
Personal insolvency or bankruptcy is for individuals who are insolvent, a technical term that means they are unable to pay their personal debts to their creditors. If you are dealing with high levels of personal debt, or are under severe financial stress, it is important that you contact experienced consultants who can give you options when it comes to personal insolvency in Australia. Insolvency Advisory Accountants can help you through this time by manipulation of legislation under the Bankruptcy Act. Read on for more information on the specifics.
Part 9 (Part IX) – Debt Agreement
Insolvency Advisory Accountants can help ease you through bankruptcy. Bankruptcy allows you to escape a hopeless financial position and to make a fresh financial start after the three-year bankruptcy period has elapsed. A Debt Agreement under Part 9 (Part IX) of the Bankruptcy Act is designed for debtors who want to avoid full-blown bankruptcy. This Debt Agreement will allow you to repay your debt to your creditors at an affordable level over a 3 – 5 year period. If you have a poor credit history, or want to avoid bankruptcy, speak to one of the professional insolvency experts at Insolvency Advisory Accountants about how you might be eligible to enter into a Debt Agreement arrangement and possibly avoid bankruptcy altogether.
Part 10 (Part X) – Personal Insolvency Agreement
For those who have large debts and wish to avoid bankruptcy, a Personal Insolvency Agreement under Part 10 (Part X) of the Bankruptcy Act will allow you to repay your creditors a higher return than they would normally receive if you were to declare bankruptcy. Personal Insolvency Agreements, like Debt Agreements, can benefit your financial future; however, it is important that you seek expert advice in order to manage your debt according to your circumstances.
At Insolvency Advisory Accountants we understand how stressful and daunting it can be to confront personal insolvency in Australia. We make it our goal to work closely with you to identify issues, risks and decisions to manage the financial impacts for your stakeholders, future business and individual financial standing.
we understand how stressful and daunting it can be to confront personal insolvency in Australia. We make it our goal to work closely with you to identify issues, risks and decisions to manage the financial impacts for your stakeholders, future business and individual financial standing.
Through the natural course of bankruptcy a trustee will be appointed who, over the 3 year term, will realise all assets and resources as well as all creditors and arrears of debts. The trustee will then liquidate the estate in order to distribute the liquidated assets among creditors, in a way that is proportionate to the debts owed by the bankrupt – i.e. the creditors with the greatest amount owed to them should receive the highest proportion of any funds recovered.
Section 73 Proposal – annulment of bankruptcy
Fortunately there are provisions within the Bankruptcy Act that enable bankrupt to have their bankruptcy annulled through a Section 73 proposal.
The repercussions of creditor’s claims can often result in bankruptcy, regardless of whether it was the individual’s choice to enter bankruptcy or if it was filed by a creditor. However, personal bankruptcy in Australia is far from the end of the world for the person who undergoes it.
At Insolvency Advisory Accountants we can utilise mechanisms within the Bankruptcy Act that allow for the annulment of bankruptcy through the provisions of Section 73, which has the same effect as if the bankruptcy had never occurred. This gives the individual an opportunity to have a ‘clean slate’, free from all debts accrued during their time of bankruptcy.
Rather than following the natural course of bankruptcy over 3 years or more, which would result in a catastrophic credit record and a painful and arduous procedure, a Section 73 proposal is an approach where “everybody wins”.
As your Insolvency Advisory Accountantss we exercise the best possible course of action for you to get back up and running, eliminating residual effects and hindrances of past financial situations to give you the best possible result. Having experience and skills specialising in Section 73 proposals, we can combine this with proven strategies to bring you through bankruptcy unscathed and ready to start over.
Personal bankruptcy in Australia needn’t be the end of the world; indeed, it can be the springboard for a whole new start! Through the use of our proven strategies and with our expert knowledge we can utilise Section 73 of the Bankruptcy Act to turn years of bankruptcy to months. Through annulment, it can be as if it had never occurred in the first place.
For more information, call the experts at Insolvency Advisory Accountants on 1300 844 350.