Bankruptcy Advice2024-10-14T14:08:59+00:00

PERSONAL INSOLVENCY & bANKRUPTCY aDVICE LAWYERS

Every Move Matters

Litigation Lawyers Sunshine Coast

Every – Move – Matters

Personal Insolvency & Bankruptcy Advice

Navigating financial uncertainty and the possibility of bankruptcy can feel overwhelming. At Axia Litigation Lawyers, we’re here to assure you that your situation might not be as dire as it seems.

We understand that everyone’s financial circumstances are unique. Our goal is to guide you toward the most appropriate resolution, whether that involves bankruptcy or exploring other viable options.

While bankruptcy can carry a stigma, it also offers a potential path to relief and a fresh start. As a legally recognised solution for managing unmanageable debt, bankruptcy can provide a break from financial pressures and help you rebuild your financial foundation. Deciding to file for bankruptcy is a significant step, but it might be the most effective way to regain control of your finances and your life. Moreover, there may be alternative solutions that can help you avoid bankruptcy while still achieving financial stability.

At Axia Litigation Lawyers, our dedicated team is committed to providing expert legal support and personalised guidance. We work with you to develop strategies that alleviate debt pressures, offer a fresh start, and explore alternative solutions to protect your assets and help you get back on track.

Contact us: Monday to Friday : 9 am – 5 pm

Get Legal Support
Get Legal Support

Every – Move – Matters

Personal Insolvency & Bankruptcy Advice

Navigating financial uncertainty and the possibility of bankruptcy can feel overwhelming. At Axia Litigation Lawyers, we’re here to assure you that your situation might not be as dire as it seems.

We understand that everyone’s financial circumstances are unique. Our goal is to guide you toward the most appropriate resolution, whether that involves bankruptcy or exploring other viable options.

While bankruptcy can carry a stigma, it also offers a potential path to relief and a fresh start. As a legally recognised solution for managing unmanageable debt, bankruptcy can provide a break from financial pressures and help you rebuild your financial foundation. Deciding to file for bankruptcy is a significant step, but it might be the most effective way to regain control of your finances and your life. Moreover, there may be alternative solutions that can help you avoid bankruptcy while still achieving financial stability.

At Axia Litigation Lawyers, our dedicated team is committed to providing expert legal support and personalised guidance. We work with you to develop strategies that alleviate debt pressures, offer a fresh start, and explore alternative solutions to protect your assets and help you get back on track.

Contact us: Monday to Friday : 9 am – 5 pm

Get Legal Support
Get Legal Support
Exploring Your options

Bankruptcy alternatives to for your financial situation.

Bankruptcy Defence Strategies

Employing strategic defences to challenge involuntary bankruptcy petitions

Trustee Liaison Support

Communicating and negotiating with appointed trustee.

Alternative Debt Solutions

Assessing debt agreements as potential bankruptcy alternatives.

Every – Move – Matters

how Axia Can Help in bankruptcy situations

Axia Litigation Lawyers can provide invaluable assistance to clients who are facing bankruptcy by offering a comprehensive range of legal services tailored to protect their interests and navigate the complexities of bankrutcy law. Here is how we can assist:

We offer initial consultations to gain an understanding of your financial situation and provide personalized advice on the implications of bankruptcy. This includes assessing how bankruptcy may affect your personal assets, director’s liabilities, career & employment options and future credit. Our expert team will guide you in choosing the best course of action tailored to your unique circumstances.

We can negotiate with creditors to restructure debts, potentially avoiding bankruptcy proceedings by reaching voluntary agreements for repayment.

Should a client be facing involuntary bankruptcy due to creditor’s petitions, we represent them in court, ensuring their rights are defended, and due process is followed.

We can explore alternative insolvency options such as Part IX Debt Agreements or Part X Personal Insolvency Agreements, which may offer more favourable outcomes than full bankruptcy.

Our team provides expert advice on lawful asset protection strategies prior to bankruptcy, helping clients safeguard their assets while remaining fully compliant with legal regulations and the Bankruptcy Act 1966 (Cth). By taking proactive steps, we aim to minimize the impact on your estate before bankruptcy proceedings commence.

If a client has been made bankrupt, we can investigate the possibility of an annulment, either by paying the debts in full or through a composition arrangement with creditors, or prove in court that you should not have become bankrupt.

We ensure clients understand their obligations under the Bankruptcy Act 1966 (Cth), including their duties to the trustee in bankruptcy.

In cases where disputes arise during the bankruptcy process, such as challenges to trustee decisions or creditor claims, we provide robust litigation services to protect our client’s interests.

We engage with trustees in bankruptcy to negotiate terms, challenge claims, and ensure fair treatment of our clients throughout the process.

For directors of companies facing insolvency, we provide strategic advice regarding their duties, potential personal liabilities, and the implications of insolvent trading.

We assist clients in defending against recovery actions by trustees, such as preferences or voidable transactions.
  • Bankruptcy Legal Advice
  • Debt Restructuring
  • Representation 
  • Insolvency Options
  • Asset Protection
  • Annulment
  • Advice on Obligations
  • Litigation
  • Negotiations With Trustees

  • Director’s Advice

  • Recovery Actions
Bankruptcy Legal Advice
We offer initial consultations to gain an understanding of your financial situation and provide personalized advice on the implications of bankruptcy. This includes assessing how bankruptcy may affect your personal assets, director's liabilities, career & employment options and future credit. Our expert team will guide you in choosing the best course of action tailored to your unique circumstances.
Debt Restructuring
We can negotiate with creditors to restructure debts, potentially avoiding bankruptcy proceedings by reaching voluntary agreements for repayment.
Representation
Should a client be facing involuntary bankruptcy due to creditor's petitions, we represent them in court, ensuring their rights are defended, and due process is followed.
Insolvency Options
We can explore alternative insolvency options such as Part IX Debt Agreements or Part X Personal Insolvency Agreements, which may offer more favourable outcomes than full bankruptcy.
Asset Protection
Our team provides expert advice on lawful asset protection strategies prior to bankruptcy, helping clients safeguard their assets while remaining fully compliant with legal regulations and the Bankruptcy Act 1966 (Cth). By taking proactive steps, we aim to minimize the impact on your estate before bankruptcy proceedings commence.
Annulment
If a client has been made bankrupt, we can investigate the possibility of an annulment, either by paying the debts in full or through a composition arrangement with creditors, or prove in court that you should not have become bankrupt.
Advice on Obligations
We ensure clients understand their obligations under the Bankruptcy Act 1966 (Cth), including their duties to the trustee in bankruptcy.
Litigation
In cases where disputes arise during the bankruptcy process, such as challenges to trustee decisions or creditor claims, we provide robust litigation services to protect our client's interests.
Negotiation with Trustees
We engage with trustees in bankruptcy to negotiate terms, challenge claims, and ensure fair treatment of our clients throughout the process.
Director's Advice
For directors of companies facing insolvency, we provide strategic advice regarding their duties, potential personal liabilities, and the implications of insolvent trading.
Recovery Actions
We assist clients in defending against recovery actions by trustees, such as preferences or voidable transactions.

Over 75 Years of Combined Experience

Meet Our Expert Team

Axia Litigation Lawyers provide exceptional service and peace of mind for their clients. Based on the Sunshine Coast, Queensland, the Axia team services clients throughout Australia and abroad.

Adam Brown

Managing Director

Adam is the founder and Managing Director of Axia Litigation Lawyers. Having worked in Litigation and Dispute Resolution for over…..

Deneil Brown, Chief Operating Officer, Axia Litigation Lawyers
Deneil Brown

Chief Operating Officer

Deneil has been immersed in the legal industry for over 25 years and has vast experience across practice management, accounts and paralegal…

Nakita Brown, Senior Associate, Axia Litigation Lawyers
Nakita Brown

Senior Associate

Nakita is an experienced commercial litigation lawyer, bringing over ten years of legal knowledge to the table. She spent her early career…

Shane Ulyatt, Senior Associate, Axia Litigation Lawyers
Shane Ulyatt

Senior Associate

With a specialised focus on civil and commercial litigation and dispute resolution, Shane expertly handles a broad spectrum of legal matters…

Sam nelson

Lawyer

Sam’s expertise of commercial and civil litigation ranges from building and construction disputes, commercial and retail shop lease matters ….

Adam Brown
Adam Brown
Managing Director

Adam is the founder and Managing Director of Axia Litigation Lawyers. Having worked in Litigation…..

Deneil Brown
Deneil Brown
Chief Operating Officer

Deneil has been immersed in the legal industry for over 25 years and has vast experience across…

Nakita Brown
Nakita Brown
Senior Associate

Nakita is an experienced commercial litigation lawyer, bringing over ten years of legal knowledge…

Shane Ulyatt
Shane Ulyatt
Senior Associate

With a specialised focus on civil and commercial litigation and dispute resolution, Shane expertly…

Sam Nelson
Sam Nelson
Lawyer

Sam’s expertise of commercial and civil litigation ranges from building and construction disputes…

Every Move Matters

how to File for Bankruptcy in Australia

To initiate bankruptcy proceedings in Australia, an individual must complete and submit the necessary documentation to the Australian Financial Security Authority (AFSA). This process marks the beginning of a legal pathway towards resolving insurmountable debt, and it’s crucial to understand each step and its implications.

Prior to declaring bankruptcy, it is prudent to consult with a qualified lawyer or financial advisor to discuss the implications of bankruptcy and explore alternative options.

Whilst seeking professional advice before declaring bankruptcy is not legally mandatory, it is highly recommended. The decision to declare bankruptcy has significant financial and legal consequences, and the process can be complex. A qualified lawyer or financial advisor can:

  • Conduct a thorough assessment of your financial situation.
  • Explain the legal implications of bankruptcy and how it will affect your assets, income, employment, and credit rating.
  • Help you understand your rights and obligations under the Bankruptcy Act 1966 (Cth).
  • Explore alternative debt management options, such as informal arrangements, debt agreements, or personal insolvency agreements.
  • Assist with the preparation and lodgment of necessary documents if bankruptcy is the most suitable option.
  • Offer guidance on the selection of a trustee and the administration of your estate.

While individuals can lodge a bankruptcy application without professional assistance, doing so without fully understanding the ramifications can lead to unintended and adverse outcomes. Therefore, while not mandatory, obtaining professional advice is a critical step to ensure that declaring bankruptcy is the right decision and that it is done correctly.

To declare bankruptcy, an individual must complete two forms: the Debtor’s Petition (also known as a Bankruptcy Form) and the Statement of Affairs. These forms require detailed financial information about the individual’s assets, debts, income, and expenses.

Bankruptcy Form: This is the primary document used to apply for bankruptcy. It is divided into two parts:

  • Debtor’s Petition: This is the formal request for bankruptcy. By completing this section, an individual is declaring that they are unable to pay their debts and are thus petitioning to be declared bankrupt.
  • Statement of Affairs: This part requires the individual to provide a full and accurate disclosure of their financial position. It includes detailed information such as:
    • Personal Information: Full name, date of birth, residential address, and contact details.
    • Employment Details: Current and recent employment information, including the name of the employer and the nature of the work.
    • Assets: A list of all assets, including property, vehicles, bank accounts, shares, superannuation, life insurance policies, and household items, along with their estimated values.
    • Liabilities: A comprehensive list of all debts, including the names of creditors, the amounts owed, and the nature of the debts (secured or unsecured).
    • Income and Expenditure: A breakdown of the individual’s income from all sources and a detailed list of monthly expenses.
    • Legal Proceedings: Information on any court cases or legal proceedings in which the individual is involved, either as a plaintiff or a defendant.
    • Creditors’ Meetings: Details of any upcoming meetings with creditors.
    • Transfers of Property: Information on any property that has been sold, transferred, or given away in the period leading up to the bankruptcy application.

The Bankruptcy Form must be filled out with the utmost accuracy and honesty. Any omission or misrepresentation of information can have serious legal consequences and may affect the outcome of the bankruptcy application.

Once the Bankruptcy Form is completed, it must be submitted to the Australian Financial Security Authority (AFSA). This can be done through AFSA’s online services portal or by sending the documents via post. It is essential to keep copies of all submitted forms and correspondence for personal records.

When an individual’s bankruptcy application is accepted by the Australian Financial Security Authority (AFSA), a trustee is appointed to manage their bankruptcy estate. The role of the trustee is to administer the estate fairly and equitably for the benefit of all creditors. There are two ways a trustee can be appointed:

  1. Nominated Trustee: The individual declaring bankruptcy has the option to nominate a registered trustee of their choice. This can be a private trustee who is a professional insolvency practitioner. To do this, the individual must obtain the consent of the nominated trustee before submitting the bankruptcy application. The nominated trustee must sign a consent to act, which is filed along with the bankruptcy forms.
  2. Official Trustee: If the individual does not nominate a trustee, or the nominated trustee does not consent, AFSA will appoint the Official Trustee, which is the government body known as the Australian Financial Security Authority itself, to act in this capacity.

The appointed trustee has several responsibilities, including:

  • Reviewing the Statement of Affairs to understand the bankrupt’s financial position.
  • Realising the bankrupt’s assets that are not protected (i.e. selling certain assets to raise funds).
  • Investigating the bankrupt’s financial conduct before and during the bankruptcy.
  • Assessing and collecting any contributions from the bankrupt’s income, if applicable.
  • Distributing funds realised during the bankruptcy process to creditors according to the priorities set out in the Bankruptcy Act 1966 (Cth).
  • Providing information to creditors about the administration of the bankruptcy estate.
  • Discharging the bankrupt from their debts upon the completion of the bankruptcy period, subject to certain exceptions.

The trustee acts as an impartial administrator and has a duty to all creditors to maximise the return from the bankruptcy estate. The trustee also ensures that the rights of the bankrupt are respected throughout the process. It is important for the bankrupt to cooperate fully with the trustee, as failure to do so can lead to an extension of the bankruptcy and other legal consequences.

When an individual is declared bankrupt, they must adhere to a range of obligations and restrictions designed to ensure a fair and transparent process for creditors, while also providing a framework for the bankrupt individual to work towards a fresh financial start. These include:

Obligations:

  1. Full Disclosure: The bankrupt must provide complete and accurate information about their financial affairs to the trustee, including any assets, liabilities, and significant changes in circumstances.
  2. Assistance to the Trustee: The bankrupt is required to assist the trustee in administering the estate. This includes attending meetings, providing documents, and answering questions truthfully.
  3. Income Reporting: The bankrupt must inform the trustee of their income and any changes to it. If the bankrupt’s income exceeds a certain threshold, they may be required to make compulsory payments to the trustee.
  4. Asset Disclosure: The bankrupt must disclose all assets, including any that they acquire during the bankruptcy period, such as inheritances, windfalls, or significant gifts.
  5. Change of Details: The bankrupt must inform the trustee promptly of any changes in their personal details, such as address, name, or employment status.

Restrictions:

  1. Credit Limits: When applying for credit or a loan over a certain amount, the bankrupt must disclose their bankruptcy status to the lender.
  2. Travel Restrictions: The bankrupt must obtain written permission from the trustee before traveling overseas. The trustee may impose conditions or refuse the request.
  3. Conduct Restrictions: The bankrupt is prohibited from engaging in certain types of business activities, such as managing a corporation or acting as a company director, without the permission of the court or the trustee.
  4. Property Transactions: The bankrupt cannot sell or deal with any property that is part of the bankrupt estate without the trustee’s permission.
  5. Gambling and Speculative Risks: The bankrupt should avoid incurring debt through gambling or speculative risks, as this can be seen as an aggravation of their financial situation.

It is critical that the bankrupt understands and complies with these obligations and restrictions. Non-compliance can result in various penalties, including an extension of the bankruptcy period, fines, or even criminal charges for more serious breaches. The trustee is responsible for monitoring the bankrupt’s conduct and can take action if they believe the bankrupt is not fulfilling their obligations or is in breach of the restrictions.

These measures are in place to protect the integrity of the bankruptcy process and to balance the interests of the bankrupt individual with those of their creditors. Failure to comply with these obligations and restrictions can lead to significant consequences, so it is essential for bankrupt individuals to engage with the process fully and transparently.

Bankruptcy generally lasts for three years and one day, commencing from the date the Australian Financial Security Authority (AFSA) accepts the bankruptcy, which occurs after the individual files their Statement of Affairs alongside the Debtor’s Petition. Unless extended due to specific circumstances, the individual is discharged automatically from bankruptcy after this period.

Navigating the bankruptcy process can be complex and daunting. Axia Litigation Lawyers are here to guide you through each step, ensuring that you understand your rights and obligations, and helping to alleviate the stress associated with financial hardship. Our expertise in bankruptcy enables us to provide clear, strategic advice and representation tailored to your unique circumstances.

Frequently Asked Questions About Bankruptcy

Bankruptcy is a legal status of a person who cannot repay debts they owe to creditors. While it offers a fresh start for individuals with financial relief from debts, also imposes certain restrictions and obligations on the individual’s conduct and financial management.

To declare bankruptcy, you must file a Bankruptcy Form with the Australian Financial Security Authority (AFSA). It’s important to seek legal advice to understand the implications and to consider if it’s the best option for your circumstances.

Not necessarily. Some types of assets are protected in bankruptcy. These may include necessary household goods, tools used to earn an income up to a certain value, and most superannuation. However, you may be required to surrender assets such as property, investments, and luxury items, which could be sold to contribute towards repaying your debts.

In Australia, bankruptcy typically lasts for three years and one day commencing from the date the Australian Financial Security Authority (AFSA) accepts the bankruptcy, which occurs after the individual files their Statement of Affairs alongside the Debtor’s Petition. Unless extended due to specific circumstances, the individual is discharged automatically from bankruptcy after this period.

Yes, but you must first request and obtain permission from your trustee, who can refuse the request based on specific criteria.

Upon being declared bankrupt, most of your unsecured debts are included in the bankruptcy and you are released from these debts upon your discharge. However, certain debts are not discharged by bankruptcy. These non-dischargeable debts include court-imposed penalties and fines, student loans (HECS/HELP debts), child support and maintenance, debts incurred through fraud, and any debts you accumulate after your bankruptcy begins.

Yes, declaring bankruptcy will significantly affect your credit rating. Bankruptcy information It will appear on your credit report for a minimum of five years from the date you became bankrupt, or two years after your bankruptcy ends, whichever is later.

It may impact your employment if your job is in an industry that imposes restrictions on employing individuals who are bankrupt. If you run a business, there are restrictions on being a company director or managing a company.

During bankruptcy, you must inform your trustee of changes to your circumstances, provide documentation that your trustee requests to assess your financial situation accurate, as required, and make payments to the trustee on behalf of the estate if you earn above a certain amount. Additionally, you must disclose all assets and liabilities, and you cannot obtain credit over a certain limit without informing the lender of your bankruptcy.

You’re able to obtain credit up to a certain amount without disclosing your bankruptcy status. Above that threshold, you must inform the lender of your bankruptcy when applying for credit.

Yes, bankruptcy can be annulled if you repay your debts in full, reach an agreement with your creditors, or the court determines it should never have been declared.

Our team will provide expert advice on your options, represent you in negotiations with creditors, assist in the preparation and submission of all necessary forms, and help you navigate through the entire bankruptcy process, aiming to protect your interests and achieve the best possible outcome.

Please note that the information provided in these FAQs is general in nature and is not intended as legal advice. For guidance specific to your situation, we recommend consulting with one of our qualified legal professionals.

Every – Move – Matters

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