At Stonegate Legal, we understand the complexities of bankruptcy law and can provide you with expert legal guidance throughout the process.
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Protect Your Rights with Our Skilled Bankruptcy Lawyers
At Stonegate Legal, we understand that financial difficulties can be overwhelming and deflating. We are here to help you navigate the complexities of bankruptcy law and provide you with expert legal guidance throughout the entire process. Our experienced lawyers are well-versed in bankruptcy laws in Queensland and will work to ensure that your rights are protected throughout the process. We will also help you explore other options such as debt consolidation, loan modifications, and foreclosure defence.
Our lawyers have a track record for obtaining positive outcomes for our clients in even the most difficult cases. With our assistance, you can get back on track financially and begin rebuilding your life.
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The Steps for Bankruptcy
Individuals are subject to bankruptcy, which means that if a company fails to repay its debts and is liquidated, the director who provided personal guarantees can also face bankruptcy. This applies even if the debt was contracted with the company and not the individual.
According to Section 41 of the Bankruptcy Act 1966 (CTH), a creditor can apply for a bankruptcy notice on a debtor if they have obtained a final judgment or order worth at least $10,000. This amount can be from one or multiple judgments or orders from the same creditor against the same debtor. The section also specifies that the judgments or orders should not be more than six years old. Therefore, a debtor can apply for a bankruptcy notice if they have a judgment or order worth over $10,000 that is less than six years old.
It is necessary to conduct a bankruptcy search before filing for a bankruptcy notice to determine whether or not the debtor has already declared bankruptcy. The Australian Financial Security Authority (AFSA) is responsible for issuing bankruptcy notices. It is crucial to ensure that the notice is correctly filled out as it can be challenged and set aside for reasons such as errors in the creditor or debtor's name, over-claiming, or other irregularities. It is important to avoid any mistakes in the application for a sequestration order to prevent the debtor from disputing it later.
After receiving the notice from AFSA, it is crucial to ensure that it is served on the debtor in a correct manner, as incorrect service can lead to the debtor challenging the notice and potentially defeating your application for a sequestration order. According to Section 16.01 of the Bankruptcy Regulations 1996 (CTH), if a document needs to be given or sent to a person, it can be done so by post, courier service, or by leaving it at their last-known address or document exchange facility.
If a debtor commits an act of bankruptcy and satisfies all the requirements, a creditor can file a petition to the Federal Circuit Court for a sequestration order. This petition involves filing an application, an affidavit in support of the application, affidavit of service of the notice, and consent to act as trustee from a trustee in bankruptcy. Further affidavits need to be provided before the hearing. If everything is done correctly, the Federal Circuit Court will issue a sequestration order, which will force the debtor into bankruptcy. To ensure that all steps are completed correctly, it is crucial to seek assistance from a bankruptcy solicitor who is well-versed in the process.
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What Is Bankruptcy?
When a person declares bankruptcy, they must hand over control of their financial affairs to a trustee whose job is to ensure that the bankrupt’s assets are distributed fairly among their creditors. This process enables the debtor to begin anew by absolving them of debts they cannot repay and provide creditors with an opportunity to recoup some of their losses.
The Bankruptcy Act of 1966 (Cth) and the Australian Financial Security Authority (AFSA) regulate bankruptcy proceedings in Australia.
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Why Choose Stonegate Legal?
Stonegate Legal is a team of proficient lawyers with ample experience in handling bankruptcy matters, including personal and corporate insolvency cases. We offer comprehensive services that cover all aspects of bankruptcy notices, including contesting them, and provide guidance to help you understand your legal obligations and rights.
Our lawyers are committed to providing strategic advice and representation that is tailored to your specific needs. We will work with you to develop a comprehensive strategy for resolving your dispute as quickly as possible.
The duration of the bankruptcy process varies from person to person and is dependent on several factors. Generally, a bankruptcy will last for three years from the day it is declared, however, the period can be extended if necessary. During this time, you may be required to submit regular reports to your trustee about your financial affairs and assets. At Stonegate Legal, we can help you understand what is expected of you throughout the process and ensure that all deadlines are met.
Yes, a business can continue to operate while in bankruptcy. However, the business must be managed by a trustee who will take control of the company’s assets and debts. The trustee will ensure that the assets are used to pay creditors and that any profits are used to benefit all creditors. They may also need to restructure or liquidate the business if it is no longer viable. Our experienced attorneys will provide you with guidance and advice throughout this process.
In some cases, it may be possible to restructure a business's debt outside of bankruptcy. This can involve negotiating with creditors to reduce or change the terms of the debt. It is important to note that this process can be complex and time-consuming, so it is important to seek legal advice before proceeding. At Stonegate Legal, our team of experienced solicitors can provide you with tailored advice and support throughout the process.
When you declare bankruptcy, you may be required to surrender some of your assets to a trustee. These assets will then be used to pay off your creditors. It is important to note that certain assets are exempt from bankruptcy and cannot be taken away from you.
Our team of experienced solicitors can provide you with advice on which assets are exempt and which are not, as well as the steps you need to take to protect them.