Bankruptcy – it’s not as easy as it seems!

The theory is, that bankruptcy enables ordinary people to get out of debt, to get back on their feet and so get on with their lives.

The theory is, that bankruptcy brings peace of mind.  Bankruptcy is not a punishment.  The theory is that bankruptcy is a legitimate fresh start for those in legitimate financial difficulty.

They’ll tell you – or your client-  that you’ll be able to sleep well again, that bankruptcy will improve your quality of life. That you/ your client won’t have to repay their debts, just by making some private administrator simple regular payments.  That Bankruptcy only lasts for 3 years and is  recorded on one’s credit history for a further 4 years but there are no restriction during this time.  Read more of this post

Recover what you can! The implications of bankruptcy

It used to be, that four blokes sat in a pub, most nights in my small town of Warrnambool.  I’ll call them Alf – the Architect, Bob – naturally he’s the Builder, Charlie – he’s the Contract earthmover – and Dave the developer.  Now Dave was an upright sort of guy and personally guaranteed his company’s debts, at least when he dealt with locals.  

After a while, Dave stopped joining his mates for a drink.  Things had changed.  It became common knowledge throughout this small, tight-knit community that there had been an environmental challenge to one of Dave’s developments and that the hold-up was costing him dearly.  Alf’s company, Bob’s Company and Charlie’s company were owed large amounts of money.   Read more of this post

Amendments to Australia’s Bankruptcy Legislation

Last month’s amendments to Australia’s Bankruptcy Legislation have, to some extent, modernised the national personal insolvency scheme.  Particular but little- noticed changes affect the filing of “Declarations of Intention to file a debtor’s petition (in bankruptcy)”.

These little-used documents, under s54A of the Act, give a breathing-space to a debtor where state debt enforcement proceedings cannot be used.  The “breathing space” has just been extended to 21 days. Read more of this post