The Bankruptcy Solution by presenting a Debtors Petition

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Who would need Bankruptcy?

Bankruptcy is for an individual. It is not for companies.

That individual would owe more money to creditors than the value of his or her assets. In other words that individual has serious personal financial problems.

The individual has no other possible deal they could put to his or her creditors to fix up their position, which would be a better result for creditors than creditors would receive in a Bankruptcy. Clearly Bankruptcy is where there is no other option.

Generally the individual’s relationship with the creditors has totally broken down.

The individual would be sick of the creditor pressure and the stress and want the whole problem just to go away.

How does Bankruptcy help?

Bankruptcy forces the creditors to deal with the Trustee. This is because creditors are prevented by the Bankruptcy Act from taking any action against the Bankrupt. This has the affect of taking away the creditor pressure the individual is living under.

Even though the individual’s credit rating is tarnished, as it would be with any deal done with creditors, which is less than full payment, it enables the individual to put their problems behind them and start again.

If an individual does not pay his or her creditors one of the creditors owed over $2,500 will eventually take action to have the individual made bankrupt. This could take six months and the three years of bankruptcy would not commence until that time. Often when a person knows they are going to have problems can be years before the problems manifest themselves as a creditors petition for bankruptcy. Why not draw the line and start again sooner.

Most personal effects and household goods are exempt property under Bankruptcy in that the Trustee is unable to neither take possession nor sell them. Where an individual is suffering an action he or she is exposed to actions by the sheriff against personal household effects by levying execution that is taking possession and selling for the benefit of the creditor who has taken the action. Going bankrupt blocks the sheriff from being able to proceed against personal and business property.

What to do if you find yourself in Difficulties

If you feel you are in difficulties and are unable to see your way out you should collect what information you can about your financial position then organise to meet with a specialist in the field to discuss your options.

Do not delay taking such action as the longer you wait the less likely other more positive options will be available. The longer you delay the more your health suffers.

Why Clout & Associates?

We are business recovery and insolvency specialists so one meeting will provide you with your choices as this is all we do.

We operate in your region and can be there for you when the problems arise. Go to the city firms and the personal nature of business in the regions is forgotten let alone your own logistical problems in getting there and the cost.

Call us for an obligation free totally confidential consultation on our details which appear below

View, print or download forms via the link below.

Forms for Bankruptcy

To discuss your options click here for our contact details.

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Morgan James Chubb

Chartered Accountant Registered and Official Liquidator Registered Trustee 38 years in Insolvency... Read more

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