Personal Bankruptcy/ Personal Insolvency

Voluntary administration is a formal insolvency process under Part 5.3A of the Corporations Act 2001 (Cth), in which an administrator assumes control of the company. Triggered when a company is insolvent or likely to become insolvent, the process carefully assesses whether rescue or liquidation better serves creditors. With external administrations reaching 13,413 companies by May…

A debt is money owed by one party to another and becomes ‘due and payable’ once the agreed payment date passes. The party owed money is the creditor, while the party who owes is the debtor. Failing to make payment does not extinguish the debtor’s obligation to repay the outstanding amount. Debt recovery applies across…

A statutory demand and a letter of demand are not interchangeable debt recovery options. Directors and credit managers regularly confuse the two, but each operates under a different legal framework and carries significant consequences for the debtor company. A letter of demand calls on a company to pay an outstanding debt and signals that further…

A statutory demand is a formal written notice served by a creditor on a company requiring payment of an outstanding debt. The demand is issued under section 459E of the Corporations Act 2001 (Cth) and the creditor must be owed a debt by the company at the time of service. Unlike a routine debt collection…

When a deceased estate cannot meet its debts and liabilities, families are often left with confusion and concern about what happens next. An insolvent estate can feel overwhelming for an executor or administrator trying to do the right thing while protecting themselves from personal liability. Australian law provides a clear and fair process to manage…

When multinational companies collapse, legal proceedings can be a lot more complex than domestic businesses. Having assets, creditors and ops scattered across multiple countries means balancing different legal systems, which adds an extra layer of complexity to something that’s already not an easy task. These kinds of cases aren’t uncommon; more than 11,000 companies entered…

What is Bankruptcy and why would you choose to become Bankrupt? Bankruptcy occurs when an individual is insolvent (unable to pay their debts as and when they fall due) and has a trustee appointed to control their assets and finance. Bankruptcy affords protection to both debtors and creditors as the bankrupt is protected from being…