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Insolvency and Bankruptcy

 

What is Insolvency?

 

Solvency is defined at section 95A of the Corporations Act 2001 as follows:

“A person is solvent if, and only if, the person is able to pay all the person’s debts, as and when they become due and payable.”

When a company is not solvent, they are deemed insolvent. A company can be deemed insolvent, even if it has an asset surplus, if it cannot liquidate those assets quickly in order to satisfy its debts.

This whole concept of company insolvency is an extremely wide-ranging issue, and it can affect so many different groups of people.

Fortunately, our experts at Irish Bentley Lawyers have extensive experience in handling many different situations for people and companies on all different sides, and we are more than capable of handling yours.

Our services are very competitively priced, and the results of our successfully completed work are worth more than just money.  We will ensure that the situation is resolved as quickly and simply as possible, and that you will be able to get back to your normal life.

 

What is bankruptcy?

 

Bankruptcy is the procedure where you’re unable to pay your debts and your assets are measured and evaluated. Your assets may be used to repay a portion of outstanding debt. It can release you from most debts, provide relief and allow you to make a fresh start.

Bankruptcy may have a serious impact on you. It may affect your ability to get credit, travel overseas or gain some types of employment.

Things to be aware of when considering entering bankruptcy:

* Bankruptcy normally lasts for 3 years and 1 day.

* You must provide details of your debts, income and assets to your trustee.Your trustee notifies your creditors that you’re bankrupt – this prevents most creditors from contacting you about your debt.

* Your trustee can sell certain assets to help pay your debts.

* You may need to make compulsory payments if your income exceeds a set amount.

  • We can help by:

  • * Providing advice surrounding whether Bankruptcy suits your individual circumstances;
  • * Using Part IX and Part X Agreements, and informal arrangements to avoid the need for bankruptcy;
  • * Arranging early disclosure from bankruptcy;
  • * Applying for the income threshold to be raised;
  • * Acting for Creditors to bankrupt Debtors;
  • * Acting for Creditors in preference and other claims made by Bankruptcy Trustees;
  • * Defending bankruptcy proceedings brought by Creditors;
  • * Assisting Bankrupts in defending Federal Court actions brought by a Bankruptcy Trustee against family members or themselves;
  • * Drafting and negotiating informal and formal Debt Arrangements for people seeking to * compromise their debts as an alternative to bankruptcy;
  • * Defending prosecutions by ASIC;
  • * Recovering preference payments; and
  • * Recovering money by selling the net equity in a bankrupts’ house.

Whether your a company or an individual dealing with Insolvency and Bankruptcy matters arrange an appointment with us on by calling 07 3229 4060 or email us at mail@irishbentley.com.au.

Disclaimer: The above does not constitute legal advice and Irish Bentley Lawyers make no representations or warranties as to the accuracy of any of the information contained herein. If you have a taxation issue, please do not hesitate to contact the team at Irish Bentley Lawyers.

 

 

Check out our article on the Tax Office below:

Tax office cracking the whip as Annual Report reveals the ATO is owed 23.7 Billion!

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