Restructuring, Turnaround and Insolvency Specialists

Personal Insolvency

Overview

Brooke Bird has significant experience when it comes to advising people who have personal financial difficulties. There are a number of insolvency options available to people with financial problems and we work closely with them to ensure that the right option is selected.

If bankruptcy can be avoided, Brooke Bird can help negotiate a legal arrangement under Part IX (nine) of the Bankruptcy Act (a Debt Agreement) or Part X (ten) of the Act (a Personal Insolvency Arrangement). These actions can allow individuals to repay their creditors some or all of their debt either immediately or over a period of time in full satisfaction of their obligations.

At Brooke Bird we specialise in helping creditors and debtors come to mutually satisfactory arrangements for the payment of debts – either in full or in part under Parts IX (nine) or X (ten) of the Bankruptcy Act.

Should a compromise of personal debts not be an option, it may be appropriate for entry into Bankruptcy. The partners at Brooke Bird can act as bankruptcy trustees.

Bankruptcy

A debtor can be declared bankrupt by voluntarily presenting their Debtor’s Petition, or when a court makes a Sequestration Order on a Creditor’s Petition.      

Part X – Personal Insolvency Agreements

A Personal Insolvency Agreement is a method by which a debtor agrees with his or her creditor (or creditors) to satisfy the debt (or debts) in full without becoming bankrupt. The creditor (or creditors) must accept this action by special resolution.

Part IX – Debt Agreements

A Debt Agreement allows a debtor to make a formal agreement with their creditors to satisfy their debts. It is a low-cost alternative when compared to declaring bankruptcy or making a Personal Insolvency Agreement but can only be used in limited circumstances.

Once creditors agree on the Debt Agreement, it is binding on all parties. The debtor is released from his or her debt (or debts) once the terms of the Debt Agreement are satisfied.

 

Click HERE for relevant AFSA information sheets.

 

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