Anthony Matthews has over 20 years experience as a Registered Bankruptcy Trustee. At Anthony Matthews & Associates we call on those years of experience along with a dedicated and experienced bankruptcy team to offer a comprehensive service to debtors who may feel the need to seek relief from their creditors under the Bankruptcy Act.
Anthony Matthews & Associates will meet with you for a free, no obligation meeting where we can work with you to determine the best course forward in dealing with your creditors. Our bankruptcy team will review your individual circumstances and tailor a recommendation suitable to your needs.
In many cases, bankruptcy may be the only option available to a debtor. If you are considering bankruptcy below is a short explanation as to how a bankruptcy works and operates:-
There are two ways in which a person may become bankrupt:
If you are unable to pay your debts and cannot come to suitable repayment arrangements with your creditors, you may voluntarily lodge a petition to become bankrupt. This is achieved by completing a Statement of Affairs and lodging a Debtor’s Petition with ITSA.
If you are unable to pay your debts and you have not otherwise entered into an arrangement with your creditors or voluntarily made yourself bankrupt, a creditor may choose to apply to the court to have you made bankrupt. If after hearing the creditor’s case and any submissions you make, the court is satisfied that you have not paid the creditor, the court makes an order (sequestration order) making you bankrupt. A trustee is appointed and you are then required to file a Statement of Affairs with ITSA within 14 days of being notified of the order.
Personal Insolvency Agreement
Those debtors adverse to bankruptcy proceedings may wish to consider the option of a Personal Insolvency Agreement (“PIA”) in accordance with Part X of the Bankruptcy Act 1966 (Cth).
This allows the debtor to present an offer to his/her creditors otherwise known as “a proposal” which will enable the debtor to offer either an increased dividend, quicker return or indeed both than that which would otherwise be achieved in the event that the debtor was made bankrupt and the bankruptcy run the statutory 3 year term.
The “proposal” allows for additional funds or assets to be introduced from the debtor or an independent party ie family member, to that which would otherwise prove available should the debtor have to pursue the bankruptcy route.
A report has to be compiled and presented to all creditors to allow them to vote on the reasonableness of the offer being presented. The ultimate decision to proceed via a PIA vests with the creditors acceptance of the proposal presented.