Personal Insolvency in Melbourne

Bankruptcy & personal insolvency

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Bankruptcy & personal insolvency

If you have been served with a bankruptcy notice or a creditor’s petition, you should obtain legal advice as soon as possible.

Bankruptcy occurs when a person is unable to pay their debt and can be entered into voluntarily by filing a debtor’s petition, or imposed by the Federal Court after hearing a creditor’s petition, which is a legal process commenced by a creditor.

How we can help you

Our lawyers will work closely with you, your accountants, and your financial advisors to find the best solution for you, which can include:

Negotiating to repay debts without the need to enter bankruptcy.
Issuing bankruptcy notices for unpaid debts.
Commencing bankruptcy proceedings.
Giving advice on bankruptcy notices received by an individual.
Acting for individuals in bankruptcy proceedings brought against them.
Assisting individuals in filing for bankruptcy and advising on legal issues.

If you are considering entering bankruptcy or a creditor intends to bankrupt you, you need to understand the implications this will have on your future. Bankruptcy can be a complicated and stressful process with a number of strict deadlines.

Our team can also advise you if you need to file for bankruptcy. The documentation can be difficult to navigate and we can provide clear advice as to what you need to declare. Our lawyers can also advise you if you are in communication with your trustee or they are requesting further information. A trustee has the power to extend your bankruptcy if you fail to declare the correct information.

Our team of experienced bankruptcy lawyers can advise you on the many options available and help find the best outcome for you.

Client Testimonials

I’ve had the pleasure to be assisted by Marilyn Wai the Senior Associate at PCL Lawyers and she has been nothing but amazing. She is thorough in her work, detailed in her responses and punctual in all her communication. Her service is second to none and I could not have asked for anyone better to oversee my cases. I was very well looked after by the entire team at PCL Lawyers when Marilyn was away. Every correspondence was transparent and easy to understand. The overall process was an absolute breeze. There is no doubt in my mind I will return for their business should I require any future assistance.

Eva B

We hired Marilyn to assist with some shareholder changes. Very happy with her professionalism and advice. Would hire again. Thanks for your help!

Nathan

I had nothing but great service using PCL Lawyers I used Marilyn Wai as my solicitor. Her attention to detail and efficiency was outstanding. I was always kept up to date with everything and was well looked after. A+++++ service. Highly recommend I will be using Marilyn for all my future legal matters Thanks again Marilyn Regards Adam

Adam W

Providing clients with the best possible service and advice.

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Frequently Asked Questions

What is a bankruptcy notice?

A bankruptcy notice is one of the key documents which must be issued before applying to the court to make a person bankrupt. A bankruptcy notice states the amount of money owed and brief reasons about why the debt is owed. The debt claimed in a bankruptcy notice must be a final order or judgment made in a court proceeding.

When a person fails to pay the debt stated in a bankruptcy notice within 21 days of it being served, they have committed an ‘act of bankruptcy’.

If a person owes you a judgment debt for more than $10,000, we can assist you to prepare a bankruptcy notice and bankruptcy proceedings if the notice goes unpaid.

I have been served with an incorrect bankruptcy notice, what should I do?

If you are served with an incorrect bankruptcy notice, you should immediately obtain legal advice.

You are entitled to apply to the Court to have a bankruptcy notice set aside within 21 days of it being served on you. If you do not commence proceedings within 21 days of service of a bankruptcy notice, the Court cannot hear your application. A bankruptcy notice may be set aside if the final order or judgment claimed in the notice may be set aside, the statement of debt is incorrect, you have a counterclaim or set-off against the debtor, or the bankruptcy notice is an abuse of process.

What is a creditor's petition?

A creditor’s petition is the court document filed to begin proceedings against a person who has committed an act of bankruptcy. If you are served with a creditor’s petition, you should immediately obtain legal advice.

Once acreditor’s petition has been filed and served, the Court will hold a hearing to decide whether it is appropriate to make the debtor bankrupt and appoint a trustee in bankruptcy.

What happens when a person becomes bankrupt?

When a person is made bankrupt, a trustee in bankruptcy becomes responsible for managing the bankrupt person’s assets and distributing them to creditor’s according to the law. The person’s name will also be listed on the publicly available National Personal Insolvency Index.

Can I make myself bankrupt voluntarily?

If you are unable to manage your debts or resolve your financial difficulties, you may consider entering bankruptcy voluntarily. You might want to do this to avoid being responsible for the costs of a creditor commencing proceedings to make you bankrupt, and selecting your trustee in bankruptcy. Before entering bankruptcy voluntarily, you should obtain legal advice to ensure you understand the consequences.

Can a bankrupt person still earn an income?

Yes. There is no restriction on the amount of income that a bankrupt can earn; however, income earned over a certain limit determined by the trustee will be received by the trustee and used to pay the bankrupt person’s debt.