At Key Credit Repair, we have handled a significant number of bankruptcy matters, ranging from relatively simple informal arrangements with creditors, to multi-million dollar bankrupt estates stretching across Australia, and almost everything in between. From this knowledge and experience, we understand how personal insolvency impacts the lives of not only the individuals involved, but also their friends and families.

Personal insolvency is the inability of an individual to pay their debts as and when they fall due.

Scenarios like Debt Agreements, Debtors Petition and, Personal Insolvency Arrangements are all scenarios where individuals recognise that they are insolvent (that is, they cannot pay their debts as and when they fall due) and have taken steps to correct that position. In some cases a creditor may seek to deal with an individual’s insolvency by requesting the court to bankrupt the estate where the individual fails to do so themselves.

As detailed in the sections below, there are many indicators that individuals should look at to see if they are insolvent, as well as indicators for creditors that individuals that owe them money may be showing signs of financial hardship.

An act of bankruptcy is an action or event that a creditor can use to make an application to the court to bankrupt a person. An act of bankruptcy must occur prior to the Court issuing a sequestration order (a bankruptcy order) on a person.

Section 40 of the Bankruptcy Act sets out an exhaustive list of ‘acts of bankruptcy’, with some of the more common acts as follows:

The most common act of bankruptcy we generally encounter is the failure to comply with a Bankruptcy Notice. A Bankruptcy Notice is essentially a formal notice of demand for payment by a creditor and (generally) allows the debtor twenty-one (21) days to either contest or pay the amount outstanding.

We are committed to making the process as smooth as possible by providing transparent and professional solutions and support that will reduce the stress and hardship. This approach will seek to adopt a commercial outcome for the parties who are financially invested in you affairs.

If you are looking for a debtor or creditor appointed bankruptcy support, Key Credit Repair can provide you with the guidance and experience you need to reach the results suited to your situation.

If by reading the above you feel like your situation is showing signs that you may be struggling, it may be time to seek professional advice and address the issues now, rather than dealing with the consequences later.

For a personalised service, contact Key Credit Repair to arrange an obligation free meeting to discuss your circumstances and whether a formal or informal insolvency arrangement may be beneficial to your circumstances.