Bankruptcy is rarely the only path, and never the first one we suggest. Quiet negotiation, formal arrangements, and where it is right, a structured fresh start.
Should you believe a creditor has begun court action against you, contact DV Recovery Management and speak to one of our experts without further delay. (02) 4225 2545
DV Recovery Management understands that the prospect of bankruptcy can be highly distressing and our aim is to provide the most equitable solution for all parties concerned. Bankruptcy is a complex and serious matter, so before considering this course of action you should talk to our registered Trustee, Mr Danny Vrkic, who has over 24 years' experience in personal insolvency management.
A Personal Insolvency Agreement is a legally binding arrangement between you and your creditors whereby you offer to pay them in full or by instalment. Your offer must be accepted by creditors in a special resolution. Under a PIA you do not have restrictions imposed on travel, incurring debt or potentially to make income contributions as in bankruptcy.
This stops your unsecured creditors taking action to recover debts for a period of 21 days. You do not have to become bankrupt after this period, however you can only lodge one declaration every 12 months.
Where you are unable to come to an arrangement with your creditors, you can consider petitioning for bankruptcy. Upon becoming bankrupt your trustee will realise certain assets to repay your creditors to the extent possible. During the course of your bankruptcy restrictions are imposed on travel, income, the level of debt you can incur, and your ability to operate a business may also be affected.
If you are unable to pay your debts and you have not otherwise entered into an arrangement with your creditors or voluntarily made yourself bankrupt, a creditor may choose to apply to the court to have you made bankrupt through a sequestration order, otherwise known as a Creditor's Petition. Upon becoming bankrupt your trustee will realise certain assets to repay your creditors to the extent possible.
If the path forward is not obvious, start with a phone call. We will listen first, set out your options in plain English, and only act if you ask us to.
