The Bankruptcy Act exists to provide a legitimate humane solution for people who can’t pay their debts, whether those are business or personal.
Debt can be caused by a relationship breakdown, unemployment or under-employment, sickness, a business failure, debt as the result of a personal guarantee, an act of nature, structural change within an industry, and – whether you will admit it or not – sometimes by too much personal spending.
There are other reasons but these are the most common reasons that I see. The main thing to know is that a bankruptcy claim works the same way, no matter what the reason.
If you would like to talk to me about bankruptcy and where it sits with you, please call me on 1300 060 122
or send me an email at email@example.com. Also, save my website www.nichollsco.com.au so you can come back and read much more, and not just about bankruptcy.
Sometimes there is confusion about companies going ‘bankrupt’. Only individuals can claim bankruptcy. There is a different set of laws and procedures when companies cannot pay their debts. They mostly go into liquidation.
If a director has signed a personal guarantee and later cannot honour that guarantee, the debt will be canceled on the bankruptcy of that director, and so life can go on.
How does a person become bankrupt?
To obtain the protection of bankruptcy, you must fill out a Bankruptcy Application form. The application form is 23 pages long and can be a bit overwhelming, if you need help completing the application we have a $330 flat fee service where we assist you with the application process.
If you would like me to be your bankruptcy trustee, email your completed forms to me (at firstname.lastname@example.org). I will attach my consent form and lodge the documents with the Australian Financial Security Authority for you to gain the protection of bankruptcy with me as your trustee.