Personal Bankruptcy - Sydney Lawyers
We provide our clients with a practical roadmap out of personal bankruptcy and help them to understand their legal position and legal options to regain control of their finances. We regularly advise individuals on their options in: dealing with bankruptcy, implementing personal insolvency agreements as well as providing advice on voidable transactions claims by trustees.
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Testimonials
We picked the most highly specialised and talented lawyers.
Recent data from the OECD revealed that Australians have the world’s second highest levels of household debt. Despite the prevalence of debt, personal bankruptcy remains a taboo subject, leaving many to privately struggle with their debt. Not only is this unnecessary, but it is also counterproductive: uninformed decisions can worsen your financial position. Fortunately, at Chamberlains we recognise that being over-indebted can be overwhelming which is why our advice is pragmatic. We provide our clients with a practical roadmap out of personal bankruptcy and help them to understand their legal position and legal options to regain control of their finances. We regularly advise individuals on their options in: dealing with bankruptcy, implementing personal insolvency agreements as well as providing advice on voidable transactions claims by trustees.
Process - what happens next?
Initial case evaluation
After an initial briefing of your matter, we will provide you with a preliminary quote.
Consultation
We look into all aspects of your matter and suggest the most viable path for you.
Case management
The Chamberlains team will work tirelessly to reach the best possible outcome for you.
Find us. Sydney
Sydney
Level 12, 59 Goulburn Street,
Sydney NSW 2000,
Australia
Services
Bankruptcy
Any natural person can be bankrupted. This includes individuals, sole traders and partnerships. Bankruptcy arises in one of two ways:
- By a creditor’s petition (involuntary bankruptcy); or
- By a debtor’s petition (voluntary bankruptcy).
Bankruptcy is a profoundly taxing process. In recognition of this, we provide sensitive, practical and discreet advice on your risks of becoming bankrupt, bankruptcy proceedings and the options available to you under the Bankruptcy Act 1966 (Cth) (‘the Act’).
Alternatives to Bankruptcy: Personal Insolvency Agreements
Bankruptcy is arguably the most well-known strategy for insolvent persons, however, it is not the only one. Given the legal and personal consequences of being declared bankrupt, it is often more desirable to pursue alternative arrangements, including personal insolvency agreements.
These agreements, also known as Part X agreements (in reference to the Act), allow for debtors to pay off their debts in a more flexible and financially feasible manner, including through instalments or lump sum payments.
We advise clients on the suitability of Part X agreements for their financial position and the legal requirements they must comply with under these arrangements. In addition to Part X agreements, we regularly advise on alternative arrangements to bankruptcy found under the Act such as Part IX debt agreements.
Great firm to work with. Stipe and the team are knowledgeable and highly professional.
Shelley B.
Compositions & Annulments
A composition is simply a bankrupt’s offer to creditors to pay a proportion of the outstanding debt. If accepted, the bankruptcy is then annulled.
Although compositions result in a favourable outcome, they can often be complex in practice as stringent requirements regarding the proposal must be adhered to.
We advise clients on the availability of this arrangement and can assist them in dealing with their trustees to achieve an outcome.
Property disputes & Family Law Proceedings
In practice, legal issues tend to overlap. Disputes over property, bankruptcy matters, and family law proceedings can often coincide.
It is not unusual for a party to family law proceedings to become bankrupt. In such cases, the bankruptcy trustee will assume control over the bankrupt’s property and their ability to transfer or otherwise assign this property will be restricted. The Family Court has powers to declare and to alter property interests in these types of matters.
Fortunately, our firm’s approach is collaborative. We engage the expertise of both our insolvency team and our family law team to provide comprehensive advice on resolving complex property disputes as well as representing you in any Family Court proceedings.
Voidable Transactions
Trustees in investigating a bankrupt person’s transactions may deem certain transfers of property to be improper and in turn seek recovery of these assets under the Act. Assets which are recovered by the trustee for the benefit of the bankrupt estate will form part of the pool which may be distributed amongst creditors.
Determining whether a transaction will be declared void for the purposes of bankruptcy involves engaging with a technical legal matrix.
The insolvency team at Chamberlains has extensive experience in these types of matters and we are ready to advise you on the likelihood of transactions being deemed void and defences you may wish to argue.
FAQs.
Contact us.
Level 12, 59 Goulburn Street
Sydney NSW 2000.
PO Box 20074
World Square NSW 2002
P +61 2 9264 9111
E hello@chamberlains.com.au