Personal bankruptcy law

Bankruptcy is a process which provides protection to people who are no longer able to pay their debts as they fall due.

A person may be declared bankrupt voluntarily, by lodging an application, or by an order of the court instigated by a creditor. A trustee is appointed to the person who is bankrupt for a period of at least three years. The trustee takes control of their estate and liquidates the assets to distribute them equally among the unsecured creditors (creditors who don’t hold security for a debt).

The effect of the bankruptcy is that unsecured creditors are generally not able to commence or continue proceedings to recover debts, although the rights of secured creditors are unaffected.

Stacks Law Firm has an experienced team who assist trustees, creditors and debtors with advice and legal representation about all aspects of personal bankruptcy.

We will advise trustees in relation to their statutory obligations and the statutory recovery actions which are available to them, including unfair preferences and other voidable transactions, and potential causes of action.

Our team can assist creditors with filing a bankruptcy notice and applying to the court for a sequestration order to have a trustee appointed to the bankrupt’s estate. This gives the trustee the opportunity to ‘claw back’ the bankrupt’s assets for the benefit of the creditors.