Bankruptcy and Creditor Petitions – What Can I Do?

Bankruptcy and Creditor Petitions – What Can I Do?

Recently we had a past client call to tell us he had been declared bankrupt by a court order. He had previously received a Bankruptcy Notice and a Creditor’s Petition but, as English was his second language, he hadn’t understood the nature or effect of the forms nor how to best proceed.

As a result, he had ignored the initial Bankruptcy Notice and the Creditor’s Petition and the Court had declared him bankrupt and had appointed a Trustee to manage his Bankruptcy. Because of the declaration of bankruptcy, what had been a comparatively small debt became a very costly exercise. More importantly, the bankruptcy jeopardised the family home. In view of the work that we provided some 12 months earlier, having established trust and delivered on the previous engagement, he was keen to re-appoint our services to work through his bankruptcy as an independent advisor and representative to the Trustee.

Rapid action required

We were quickly able to articulate the options available, and the importance of fully co-operating with the Trustee. We were able to identify the preferred options in view of his wants and needs, and then work with the Trustee to deliver on the preferred outcome. In this instance, we assisted in collating and presenting the required information for the Trustee, forging a trusted relationship between the parties, and work toward the key objective of having the bankruptcy annulled, thereby saving the family home.

If you ever receive a Bankruptcy Notice we recommend that you seek independent advice as early as practically possible. Obtaining early advice is likely to save you significant amounts of time and many thousands of dollars in costs. There are always available options to be reviewed.

Our firm prides itself on our professionalism, independence and our common sense approach to a viable solution. We are always happy to spend 15-30 minutes to discuss your matter (P | 1300 732 040). Craig Garbler Oct/16