A person can be adjudicated bankrupt by the High Court on the application of a creditor
or by the insolvent individual (debtor initiated).
Becoming bankrupt may not necessarily involve the social stigma that it once did however
persons facing bankruptcy should be aware on the consequences
and other options, particularly if the person is considering a debtor initiated
The consequences of bankruptcy are:
- That the bankrupt’s property vests in the Official Assignee (“Assignee”).
- That the bankrupt may be required to contribute to payment of the bankrupt’s
- That certain transactions made before bankruptcy may be set aside.
- That the ability to work in certain occupations or keep the current employment may
- That certain statutory office positions (wide ranging) will not be able to be
A bankrupt with the necessary permission may not:
- Act as a director of a company
- Enter into, carry on or take part in the management or control of a business;
- Be employed by a relative of the bankrupt;
- Be employed by a company, trust, trustee or incorporated society that is owned,
managed or controlled by a relative of the bankrupt.
- Travel overseas;
- Must not obtain credit of over $1,000 without informing the creditor
Bankruptcy normally comes to an end 3 year from the date of filing the bankrupts
statement of affairs with the Assignee.
During bankruptcy the bankrupt’s affairs are managed by a case officer from the office
of the Assignee.
During bankruptcy a bankrupt can put forward a compromise to creditors. This is known as
The effects of bankruptcy can be wide ranging and generally a professional will add
significant value in assisting
the bankrupt through the bankruptcy, particularly if the bankrupt is wishing to be
be in business, travel overseas or oppose certain actions that the Official Assignee may
engage in against the bankrupt.
Norrie & Daughters has the experience and skilled team to assist those facing or who are