Bankruptcy

Rodgers Reidy is Australasia’s largest advisory consultancy specialising in corporate and personal insolvency, bankruptcy, recovery and forensic accounting.

Going bankrupt is a last-resort action to help you deal with extreme financial distress. While bankruptcy can have a negative connotation, in certain circumstances the opportunity to start afresh without the stress of debts and creditors looming over you can be liberating.

‘Safe harbour’ legislative changes designed to support and encourage entrepreneurs who act in good faith to re-engage in business sooner have further reduced the stigma associated with bankruptcy.

Bankruptcy is a legal process that protects individuals who are unable to pay their outstanding debts or come to a repayment agreement with creditors. While it imposes certain obligations and restrictions on you, the process of bankruptcy may be the best way for you to be released from most debts.

There are two types of bankruptcy: 

  • voluntary bankruptcy, where you apply to become bankrupt, and 
  • involuntary bankruptcy, where a creditor whose debt is $5,000 or more files a creditor’s petition at court for an order that you be made bankrupt. 

An independent person - either a registered trustee, or the Official Trustee, who is the representative of the Australian Financial Securities Authority (AFSA) - is then appointed to manage the person’s financial affairs.

There are many options available to you before declaring bankruptcy, so it is vital that you get expert advice from an experienced, independent advisor to examine all your options and obligations

Learn more about ATO bankruptcy notices, or visit AFSAASIC or business.gov.au for more information. For expert advice, contact Rodgers Reidy to discuss your options - before it's too late.

Contact our team

Processing...
Latest News
Bankruptcy: What happens to my Superannuation?
Bankruptcy: What happens to my Superannuation?
A common question asked about being bankrupt is what happens to my hard earned superannuation? The response to this question will depend on when and how your superannuation was received. Superannuatio…
Risk Watch Essentials - November 2020
Risk Watch Essentials - November 2020
Covid Analysis The tables and graphs below show that the COVID-19 stimulus measures introduced have had a drastic effect on the number of insolvency and winding up procedures. For the months of Octobe…
Lunch 'n' Learn Webinar - Return to work 2021 (a road to recovery)
Lunch 'n' Learn Webinar - Return to work 2021 (a road to recovery)
Our panel for this month’s Lunch N Learn Webinar will explore issues around employment, property and the debtor-in-possession regime that will be active in Australia in the new year. Host – Brent…
How are a director’s outstanding employee entitlements dealt with in a Liquidation?
How are a director’s outstanding employee entitlements dealt with in a Liquidation?
An Insolvency Practitioner’s response to this question is guided by the definition of “Excluded Employee” within Section 556 of the Corporations Act 2001. What is an Excluded Employee? An indivi…
BTG Global Advisory Announces Further Expansion
BTG Global Advisory Announces Further Expansion
Rodgers Reidy are a proud member of BTG Global Advisory, who are delighted to announce the extension of their geographic reach into Mexico and Russia. The collaboration of BTGGA members B. Riley Finan…
Webinar Recap 18 November 2020: Australia vs USA Clash of the Debtor in Possession (Chapter 11) Insolvency Regimes
Webinar Recap 18 November 2020: Australia vs USA Clash of the Debtor in Possession (Chapter 11) Insolvency Regimes
Rodgers Reidy hosted an insightful webinar on 18 November 2020, featuring Wayne Weitz from B. Riley Financial (USA) and Andrew Barnden from Rodgers Reidy (Aus), with others as they explored the new De…
Menu