Debtor’s Petition

An individual can become bankrupt voluntarily by filing a debtor’s petition. Filing a debtor’s petition protects you from being further pursued by your creditors and will release you from most of the debts (there are limited exceptions) that you have incurred prior to filing for bankruptcy. This is achieved by completing a Bankruptcy Form that contains your Statement of Affairs.

The Statement of Affairs summarises your assets, liabilities, and business dealings. It is important to complete this form in full & truthfully, so it is accepted by the Official Receiver at the AFSA Registry.

We can assist you in completing and filing this form at no cost when Anthony Matthews is appointed as your Trustee.

Creditor’s Petition/Sequestration Order

If you’re unable to pay your debts and haven’t declared yourself bankrupt, you might be made bankrupt by a sequestration order made by the court on the petition of a creditor. This occurs when a creditor files a petition in court to make you bankrupt. If the court is satisfied that all the elements of the creditor’s petition are met and you are unable to pay the creditor, the court will make the sequestration order which declares you bankrupt. A trustee who has consented to act will be appointed by the court, and you are required to file a Bankruptcy Form/Statement of Affairs with AFSA within 14 days of being notified of the sequestration order.

If you are a creditor and require a consent to act from a Bankruptcy Trustee when filing a Creditor’s Petition, Anthony Matthews stands ready and able to assist. Contact our office to discuss how Anthony Matthews can assist you in acting as Trustee in relation to a Creditor’s Petition.

Personal Insolvency Agreement

Debtors who wish to seek an alternative to bankruptcy might consider the option of a Personal Insolvency Agreement (PIA) which is available under the provisions of Part X (10) of the Bankruptcy Act. This provides a debtor with the opportunity to present an offer to their creditors, which is also known as a Proposal.

The Proposal enables the debtor to offer an increased dividend, a quicker dividend, or both in comparison to what may be achieved during the statutory 3-year bankruptcy term. Additional funds and assets can be sourced from an independent third party (e.g. family member) that would not otherwise be available to creditors in a bankruptcy.

The Controlling Trustee reviews the proposal and conducts investigations into the debtor’s affairs and prepares a report with all the compiled information to the creditors which contains the Controlling Trustee’s opinion as to whether creditors should accept the debtor’s proposal. Ultimately, the success of a debtor’s PIA proposal is dependent on the creditors passing a special resolution in favour of the proposal at a meeting of creditors.