Personal Insolvency Lawyers in Sydney

What should I do if an incorrect bankruptcy notice has been served?

Upon being served, it is important to seek immediate legal advice. You have the right to petition the Court for setting aside a bankruptcy notice within 21 days. Failure to initiate proceedings within this timeframe will result in the Court being unable to entertain your petition.

The grounds for setting aside a bankruptcy notice include scenarios where the final order or claimed judgment therein is not due and payable, the debt statement is inaccurate, a counterclaim or set-off greater than the amount claimed in the notice exists against the debtor, or the bankruptcy notice is deemed an abuse of the legal process. Setting aside a bankruptcy notice is highly complex and the lawyers at PCL Sydney have a track record in successfully setting aside bankruptcy notices or sequestration orders made by the Court.

What does a creditor's petition entail?

A creditor’s petition is the legal document filed to initiate proceedings against an individual who has engaged in an act of bankruptcy. Upon being served with such a petition, seeking prompt legal advice is recommended.

Following the filing and serving of a creditor’s petition, the Court will convene a hearing to determine the suitability of declaring the debtor bankrupt and appointing a trustee in bankruptcy.

What does bankruptcy involve?

Bankruptcy involves the transfer of responsibility for managing an individual’s assets to a trustee in bankruptcy, who then oversees the realisation of assets that vests with the trustee in bankruptcy and distribution of these assets to creditors. When bankruptcy is declared, the individual’s name will also be included in the publicly accessible National Personal Insolvency Index.

Is it possible to choose to make yourself bankrupt?

Voluntary bankruptcy is an option when an individual is unable to manage debts or resolve financial difficulties. This may be considered to avoid expenses associated with creditors initiating bankruptcy proceedings. However, prior to opting for voluntary bankruptcy, it is important to seek legal advice so you fully understand the implications and your legal obligations to your trustee in bankruptcy.

Can an income be earned by someone who has declared bankruptcy?

Yes, an income can still be earned by a bankrupt individual. You must declare that you are a bankrupt to your employer and dealings with third parties. You may be liable for income contributions to your trustee in bankruptcy if your income exceeds the statutory income threshold with or without dependants. Your obligation to pay income contribution is 50 cents in every dollar earned over the income threshold after tax. Your income contribution continues throughout the whole period of your bankruptcy – 3 or 8 years.