Bankruptcy and Insolvency (Consumer) Lawyers
Individuals can go bankrupt in much the same way as companies do. This happens when the individual can no longer pay his debts to his creditors and no settlement is possible. The creditor may file an insolvency case against the individual in the high court, resulting to the bankruptcy of the individual. In most cases, however, it is the individual who files a bankruptcy case.
What is Bankruptcy and Insolvency (Consumer) Law?
The bankruptcy and insolvency law is the legislation that governs the bankruptcy of individuals in Australia. An individual can file a declaration of bankruptcy by passing the following at the Insolvency and Trustee Service Australia (ITSA):
- Debtor's petition
- Statement of financial affairs
- Other documents required by the ITSA
The ITSA is the government agency responsible for the regulation and administration of personal insolvency.The bankruptcy and insolvency law for consumers provides four types of bankruptcy to individuals. These are:
- A liquidation-style case (Chapter 7)
- A complex rehabilitation style case used by individuals with substantial debts and assets (Chapter 11)
- A payment plan or rehabilitation style case intended for farmers and fishermen (Chapter 12)
- A payment plan or rehabilitation style case for those with a regular source of income (Chapter 13)
In cases where the creditor files the petition for the individual's bankruptcy, some of the debtor's assets may be sequestered by the creditor with permission from the Federal Magistrates court. Usually, sequestration of assets is done by the creditor in an attempt to recoup what little portion they can from the money they have lent to the individual.
Who Needs Bankruptcy and Insolvency (Consumer) Lawyers?
The services of Bankruptcy and Insolvency lawyers are hired by individuals facing bankruptcy and insolvency cases. These lawyers may also be hired by the financial institution filing a bankruptcy case against an individual. Bankruptcy and insolvency lawyers are especially trained to address problems regarding bankruptcy and insolvency of individuals. Some of the many functions of the bankruptcy and insolvency lawyers are the following:
- Defend the individual petitioned for insolvency and bankruptcy.
- Assist the individual in bringing up his applications for bankruptcy to the Insolvency and Trustee Service Australia.
- Assist the individual in starting fresh by having all his debts cancelled through an order by the court.
- Assist creditors in recovering debts.
- Assist the creditor in the filing of the insolvency and bankruptcy case against the debtor.
- Assist the creditor in obtaining court judgments.
- Give advice to individuals on matters concerning insolvency and bankruptcy.
If you are in the brink of bankruptcy or are planning to file a bankruptcy case, ask advice from bankruptcy and insolvency lawyers. You might have a lot of questions in your mind that need answers before you decide to go bankrupt. The words of a professional in this field may be able to give you insights in your next step or perhaps keep you from losing all your assets.