Bankruptcy information in Australia is based on the Bankruptcy Act, regulated by the Insolvency and Trustee Service Australia (ITSA) and the Corporation Act, regulated by the Australian Securities and Investments Commission (ASIC).

According to ITSA, some 24,000 bankruptcies and 8,000 corporate administrations occur in Australia each year, directly impacting around 400,000 people.

Many debtors reach a point where they feel that no amount of repayment negotiations will enable them to regain their financial footing. Voluntary bankruptcy is one option available.

Similarly, creditors who've spent time, money and resources chasing late payments can apply to the court to have a debtor declared bankrupt in an effort to recoup a portion of the sum owed.

If you or your business fits into either of these camps, it's important that you equip yourself with bankruptcy information before making any decisions - like entering into insolvency or a debt agreement - that could have significant financial ramifications for years to come. Typically, bankruptcy lasts for three years. However, in some circumstances it can be extended.

Why check for Bankruptcy?

In an effort to avoid having to take a debtor to court to have them declared bankrupt, it's important to assess new businesses, schemes and projects before you enter into a contractual agreement.

A history of bankruptcy will appear on the National Personal Insolvency Index. It's here that information will be sourced from when conducting an individual Bankruptcy Search.

A Bankruptcy Report comprises of key information on 17 datasets including:

• Date of Birth
• Date of Death
• Address
• Occupation or Business Details
• Administration Numbers
• Type of Order
• Dates of Bankruptcy

• Date of Entry on the NPII
• Trustee
• Administration
• Petitioning Creditor's & Solicitors Names
• Court Reference
• Dates and Hearing Results

We help mitigate the negative effects of insolvency for stakeholders and maximise potential returns. Our aim is always to achieve the best outcome possible for our clients.

Business insolvency

Our team of registered and official liquidators in NSW acts for banks, company directors, business owners, legal advisors, creditors, investors and regulators. Our experience includes insolvency situations in industries such as property and construction, energy, mining, retail, manufacturing, logistics, primary industry, and tourism and hospitality.

We listen to all stakeholders to understand their objectives and implement a strategy that maximises their returns. In this way, we protect creditors’ interests, maximise realisations, manage claims and, where appropriate, pursue recoveries.

The three main vehicles for achieving these outcomes are receivership, creditors’ voluntary liquidation and court liquidation:

• Receivership. Law Services Australia (LSA) has acted for all of Australia’s first and second tier lenders as receiver and manager of distressed businesses. As receiver, we take control of a specific asset or entire business that is subject to security, typically held by a bank, and take steps to realise the value for the best possible outcome to the secured creditor.
• Creditors’ voluntary liquidation. Law Services Australia (LSA) may be appointed as creditors’ voluntary liquidator when an insolvent company’s directors and shareholders resolve to liquidate the company, or when creditors vote for liquidation following a voluntary administration or terminated deed of company arrangement.
• Court liquidation. Law Services Australia (LSA) is regularly appointed by courts that determine a business is insolvent and that liquidation is the best means to repay claimants. The appointment may take the form of provisional or official liquidation, where the former is a temporary mechanism. It enables us to take control of the business and its affairs, allowing for an orderly winding down of operations and realisation of assets.

Personal insolvency

If you experience personal financial distress, Law Services Australia (LSA) can help. Our team of registered trustees in bankruptcy in Sydney works with debtors to achieve the best possible solutions to their difficulties.

We also act on behalf of creditors to recoup losses. We do this by investigating and assessing potential recoveries available to the trustee. In addition, we may investigate and report any offences the debtor may have committed.

We understand both sides of personal insolvency and provide all parties with a resolution that reduces distress and anxiety.

The two main vehicles for achieving positive outcomes in these situations are personal bankruptcy and personal insolvency agreements:

• Personal bankruptcy. In cases of personal bankruptcy, Law Services Australia (LSA) acts for debtors to advise creditors on the likelihood of a return. We also act for creditors to investigate bankrupt estates and recommend ways of maximising recoveries.
• Personal insolvency agreements. We have extensive experience in personal insolvency agreements (PIAs), an alternative to bankruptcy. A PIA is a flexible but legally binding arrangement between a debtor and creditors. It identifies the debtor’s property and income available to pay creditors’ claims. It also specifies how any realisations are to be dealt with.

First consultation free! call us on (04) 1420 4204