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.

Contact Form

  • This field is for validation purposes and should be left unchanged.

Testimonials

Alison recently acted for me with respect to a complex personal injury matter resulting from prolonged sexual harassment within the workplace.

Alison understood the impact of these events on my life from the outset, in some ways before I had even had the chance to come to terms with what had happened to me. Her clarity allowed me to focus on my treatment while she pursued legal action on my behalf. She believed in me when I doubted myself and reassured me when I felt I was not strong enough to keep on fighting.

I never felt judged by Alison or her team. I felt heard and cared for. The complexities of the case were always presented to me in an straightforward manner and I had trust that where there were risks for my case, that these would be explained carefully to me so as to give me the opportunity to decide on the best path forward with the backing of my expert team.

Personal Injury Client

I engaged Chamberlains Law Firm on the recommendation of my financial planner. Antonia Tahhan was professional, responsive and completed the advise on budget/ on time but more importantly provided clear legal advise and then followed this with a phone call explaining the advise. I have no hesitation recommending Chamberlains Law as your legal representatives.

Workplace Law Client

There are not enough stars for me to rate Jasmin Mantoufeh and Chamberlains Law Firm! Jasmin went above and beyond for me and I am so grateful to have her in my corner! From our first meeting, Jasmin took carriage of my case and her personal attention to me was amazing. I will most certainly refer and if I ever need a lawyer again, Jasmin is the person I will call!

Workplace Law Client

I cannot thank you enough for your professional and empathetic approach making it as smooth and seamless as possible during the mediation. You have all dealt with my ups and downs during the process and the level of detail, care and kindness from you all is appreciated more than I can express.

Family Law Client

You have given me the chance of a fresh start that I didn’t think I’d ever have again to be honest. You literally changed my life and I’ll never be able to thank you enough. Just wanted to let you know how much I sincerely appreciate all your help and hard work.

Compensation Client

The team at Chamberlains made buying a property extremely easy, I never once experienced the stress people talk about during the exchange/settlement periods of their property. Definitely recommend!

Conveyancing Client

The debt recovery team went above and beyond when our business was owed money. Would use again for sure!

Insurance Client

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

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

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.

  • What is bankruptcy?

    Bankruptcy is a legal process which declares that a person is unable to pay their debts. It can absolve them of most debts and allow the person to have a fresh start. It can be seen as an exchange of a person’s assets and financial control for legal protection from the person’s creditors.

    There are two ways to enter bankruptcy. You can either:

    (a) enter voluntary bankruptcy; or

    (b) someone you owe money to (a creditor) can make you bankrupt through a court process.


  • Who manages my bankruptcy?

    When you become bankrupt, a trustee is appointed to manage your bankruptcy. This can be either:

    (a) the Official Trustee in Bankruptcy of the Australian Financial Security Authority (AFSA); or

    (b) you can nominate a registered trustee of your choice.

    The trustee’s fees are generally paid out of the funds recovered in the administration of the bankruptcy.


  • What happens to my assets?

    An asset is anything of value that you possess, such as real estate, vehicles, cash or money in a bank account and tools.

    During bankruptcy, your trustee may be able to claim and sell some of your assets. The proceeds from the sale of your assets can be used to repay the money that you owe to creditors.


  • What are my options? Do I have other options aside from bankruptcy?

    Bankruptcy is just one formal option available under the Bankruptcy Act to manage your debt. Other formal options include six-month relief and a debt agreement.

    A bankruptcy alternative is a Personal Insolvency Agreement (PIA). A PIA involves the appointment of a trustee to take control of your property and make an offer to your creditors. The offer may be to pay part or all of your debts by instalments or a lump sum. Entering a PIA may have a severe impact on you. It may affect your employment, ability to get credit and will appear on a public register permanently.

    Additionally, a debt agreement (DA) is available pursuant to Part IX of the Act. It is an agreement between the debtor and his or her creditors to compromise by paying a percentage of the debts owed over a period of time.

    You can read our full FAQ here.


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