We believe that bankruptcy is the last resort and SV Partners will work with you to find alternative solutions to your financial problems.
However, in the event that you are no longer able to pay all your debts, you voluntarily declare bankruptcy (also known as a Debtor’s Petition) or a creditor makes an application to the courts to make you bankrupt (also known as a Creditor’s Petition), SV Partners can help you.
Bankruptcy is a legal process that provides protection to people who are unable to repay their debts or reach a suitable arrangement with their creditors. Although it is important to know your options and consequences before becoming bankrupt, bankruptcy may be the most suitable avenue that allows you to be released from most debts.
Once the act of bankruptcy has occurred, there are obligations and restrictions imposed on that individual.
What causes Bankruptcy?
- A situation where an individual is unable to pay all their debts
- A situation where an individual receives letters of demand, writs and/or bankruptcy notices from creditors, debt collectors or solicitors
- An individual chooses to make themselves bankrupt with debts of at least $5,000 and a connection with Australia
- An individual’s personal guarantees provided for company debts are called up
- A creditor applies to the court to make an individual bankrupt if they can prove that the individual has at least $5,000 in debt and that a bankruptcy notice has expired
- When a creditor is experiencing non-payment of a debt, dishonoured cheques or payments, trading terms extended or not met by the individual
- When a creditor has sufficient reason to believe that the debtor is disposing or transferring property prior to their bankruptcy
What are the expected outcomes of bankruptcy?
- A Registered Trustee (such as SV Partners) is appointed and manages your bankruptcy
- The Trustee recovers and sells your assets for the benefit of the creditors and investigates your financial affairs
- Relief is provided to the individual in bankruptcy from debt problems and extinguishes existing debts
- Relief from creditor demands
- The ability for the individual to start life afresh after bankruptcy, being free from debt