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Overview of Personal Insolvency |
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Brooke Bird is one of the largest advisers to individuals concerning their personal financial circumstances. If bankruptcy is the preferred course of action, the partners can act as trustees in bankruptcy.
Where bankruptcy is not appropriate, Brooke Bird can help negotiate a legal arrangement under Part IX (nine) ("Debt Agreement") or Part X (ten) ("Personal Insolvency Arrangement") of the Bankruptcy Act where individuals can repay their creditors some or all of their debts either immediately or over a period of time.
We specialise in helping creditors and debtors make mutually satisfactory arrangements for the payment of their debts either in full, or in part, under Part IX (nine) or Part X (ten) of the Bankruptcy Act.
DEBT AGREEMENTS
A Debt Agreement (Part IX [nine]) is a low cost alternative to Bankruptcy or a Part X (ten) Personal Insolvency Arrangement whereby a debtor can formalise an agreement with creditors to satisfy their debts. Once the agreement is accepted by creditors, it is binding on both the debtor and the creditors. Should the terms of the Debt Agreement be completed and satisfied, the debtor is released from their debts.
Click HERE for further information on Debt Agreements
PART X - Personal Insolvency Arrangements
Anyone who is insolvent or faces a bankruptcy petition has the right to call a meeting of their creditors to make them an offer with a view to avoiding bankruptcy. They can consult a Registered Trustee, who is empowered to call a meeting of creditors under Part X of the Bankruptcy Act.
Click HERE for further information on Personal Insolvency Arrangements
BANKRUPTCY - WHAT HAPPENS?
A debtor may be declared bankrupt by presenting their own petition or by the Court making a Sequestration Order on the petition of a creditor. If the latter occurs the costs of the creditor become a priority payment in the bankruptcy. However the creditor will only receive monies if assets can be realised or if the bankrupt is required to make compulsory income contributions to the estate and this is sufficient to cover the costs of the bankruptcy Trustee and the petitioning creditors' costs.
Click HERE for further information on the responsibilities of Bankrupt Individuals
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