You may be able to apply to make a debtor bankrupt if that person owes you, or your business, more than $5,000. Before you can bankrupt a debtor you must obtain a Court Judgment.
You should consider if it is worth making the debtor bankrupt. Some factors to consider are the costs of making someone bankrupt and the debtor’s financial situation, including the available funds and assets and other creditors including secured creditors.
Basically, a person is bankrupt if they can’t pay their debts as and when they are due for payment.
Making a debtor bankrupt and in turn having their estate administered can provide you access to assets that would not otherwise be available to you to satisfy your debt. As a creditor you will share proportionately in the bankrupt’s assets. The trustee responsible for administering the estate will be somebody who is experienced.
The trustee will ensure that the competing creditor claims are dealt with in order of preference under the Bankruptcy Act 1996 (Cth). The bankrupted debtor’s conduct before the date of bankruptcy will also be investigated. Assets disposed of or hidden prior to the bankruptcy may be able to be recovered or ‘clawed back’ as they are considered preferences.
If somebody owes you or your business money, get in touch today for tailored advice on recovering the debt and bankrupting your debtor – if necessary.
For information on the steps involved see:
Or if you have been served with a Bankruptcy Notice see:
If you are considering voluntary bankruptcy see:
Proper experience in dealing with bankruptcy and debt recovery is essential. Aitken Whyte Lawyers are focused on results. Our litigation and disputes team will advise you on the proper course to take to recover your debt.
Aitken Whyte Lawyers can assist you with all debt recovery matters.
Aitken Whyte Lawyers
11/8 Pikki Street,
Maroochydore Qld 4558
Ph: +617 5408 0655
Fax: +617 3211 9311