Exploring the Legal Framework of Bankruptcy

The Bankruptcy Advisory Centre is an AFSA and ASIC registered adviser with over 30 years of experience providing bankruptcy regulations and procedure advice in Australia, helping everyday Australians resolve their financial problems.

Personal Insolvency Law Reform

The bankruptcy legal framework in Australia is a complex system of laws and regulations that govern the process of personal and corporate bankruptcy. Our expert team offers various debt solutions for individuals and businesses across Australia from our  Sydney, Melbourne, Brisbane, and Perth offices. Our goal is to provide a clear pathway to financial freedom.

Bankruptcy Regulations

Bankruptcy regulations are a set of rules that govern the bankruptcy process in Australia. Bankruptcy in Australia is governed by the Bankruptcy and Insolvency Act 1966, which sets out the legal framework for insolvency. Additionally, the new Bankruptcy Regulations 2021 are the secondary legislation governing bankruptcy administrative and procedural requirements for the bankruptcy process. These regulations cover issues such as bankruptcy exemptions, a bankruptcy trustee’s role, and the debtors’ and creditors’ rights and obligations. 

Bankruptcy Process

The bankruptcy process allows individuals and businesses to declare themselves bankrupt. This process can be voluntary or involuntary and involves the appointment of a bankruptcy trustee to manage the debtor’s affairs.

Personal Bankruptcy

Personal bankruptcy, or personal insolvency, is when an individual can declare themselves bankrupt. At the Bankruptcy Advisory Centre, our expert team of AFSA and ASIC registered advisers can help you process the paperwork and act as your bankruptcy trustee in a process designed to provide debt relief to individuals unable to pay their debts.

Corporate Bankruptcy

Corporate bankruptcy, or company insolvency, offers businesses which cannot meet their debt obligations the opportunity to declare bankruptcy. The same bankruptcy regulations govern Company Insolvency, but it is a more complex process that usually involves liquidating the company’s assets and imposing restrictions on company directors.

The Role of a Bankruptcy Trustee

The role of a bankruptcy trustee in Australia is to manage the affairs of a debtor who has filed for bankruptcy. This includes selling assets to pay off creditors, managing legal disputes, and administering bankruptcy.

Bankruptcy Exemptions

Assets exempt from a bankruptcy trustee’s sale are known as bankruptcy exemptions. These exemptions include personal assets, such as household items and vehicles of a specific value, and assets related to employment or business activities.

Voluntary Bankruptcy

Voluntary bankruptcy in Australia is a process by which an individual or business can declare bankruptcy voluntarily. At the Bankruptcy Advisory Centre, we can help you process the paperwork and navigate the complexities of voluntary bankruptcy.

Involuntary Bankruptcy

Involuntary bankruptcy occurs when a creditor files a petition with the court to declare an individual or business bankrupt. The creditor will issue a sequestration order, and the court will appoint a bankruptcy trustee to manage the debtor’s affairs and sell off assets to repay the creditors.

Discharge of Bankruptcy

Bankruptcy discharge in Australia refers to the process by which a debtor is released from their debts after filing for bankruptcy. This discharge can be conditional or unconditional and typically occurs after three years and the sale of assets to pay off creditors.

Need more information about the Bankruptcy Legal Framework in Australia?

“The Bankruptcy Legal Framework in Australia is a complex system of laws and regulations that can be difficult to navigate. However, by understanding the bankruptcy regulations and process, the Bankruptcy Advisory Centre helps individuals and businesses make informed decisions about their financial future by assisting them in understanding bankruptcy regulations and procedures and offering personal debt solutions tailored to their situation.

Claiming bankruptcy or personal insolvency may be your best option if you are drowning in debt and constantly stressed over your financial future. If you need bankruptcy advice in  Sydney, Melbourne, Brisbane, and Perth offices or anywhere around Australia, we can help you make informed choices and choose your path to financial freedom.”