When an individual owes money to a creditor, they can pursue recovery of the debt owed through the Court system. If the debt is not repaid, ultimately the individual (debtor) can be declared bankrupt by the Court (called a Sequestration Order).
The process to bankrupt an individual through the Court system is commonly undertaken by legal practitioners. Bankruptcies are administered by either a registered trustee (such as members of SV Partners) or the Official Trustee (via the Australian Financial Security Authority – AFSA, which is an executive agency in the Attorney-General’s portfolio of the Federal Government).
To appoint SV Partners to handle a bankruptcy by way of a Court application, you must obtain a Consent to Act from us and file it with the Court.
In addition, AFSA has recently highlighted the Consent must also be filed with AFSA before the day on which the sequestration order is made (see section 47 of the Bankruptcy Regulations).
If a creditor does not obtain and file (with the Court and AFSA) a Consent from a registered trustee, the Official Trustee is automatically appointed.
To our colleagues who want to appoint us as bankruptcy trustee, please contact us to obtain a consent to act and ensure it is filed with the Court and AFSA prior to the bankruptcy.
If you miss the boat, you can still seek to have us appointed as Trustees during the bankruptcy (to replace the Official Trustee), although this is subject to creditors’ approval.
At SV Partners, we have a team of specialists that can assist with bankruptcy and related insolvency matters.
Disclaimer – The material in this article is provided for information purposes and should not be construed as legal advice. It should not be used as a substitute for consultation with a professional specialist accountant or advisor. This material should not be accepted as authoritative advice and you should consult with a trusted professional advisor prior to proceeding with an engagement.
Article written by Jason Cronan (Director) – Sunshine Coast