Bankruptcy can be an incredibly overwhelming, stressful and, often, a fast-moving time.
For a number of reasons, you can find yourself heading towards personal insolvency where bankruptcy is your best or only option for recovery. An investment has gone wrong, a combination of debt is out of control – even where the line between your business and personal assets has blurred and market changes means you are now personally affected. There can be early red flags, but also events that come with little warning.
The circumstances that lead to personal bankruptcy are, in themselves, personal and individual: but across the board, for those affected and also regularly their families, it is daunting, confusing and often very lonely. As time passes, emotions and risk escalate and the opportunity to put in place a sustainable or proactive plan reduce.
About the personal bankruptcy process
Bankruptcy is a legal process – underpinned by the Bankruptcy Act – where an individual declares that they are unable to pay their debts. It can be done voluntarily by the submission of a bankruptcy form with the Official Receiver, or by court proceedings initiated by creditors, referred to as a Creditor’s Petition.
Bankruptcy can have serious impacts on individuals: it affects their abilities to get credit, travel overseas, ability to manage corporations, gain some types of employment, or it may result in the sale of assets by the Trustee in Bankruptcy.
However, more often than not, bankruptcy can bring a chance to relieve the financial burden when all other options are exhausted and get a fresh start. There can be a number of options to consider. Therefore, seeking guidance – even if confidential at the outset – with specialists skilled in bankruptcy, across a range of industries, is a first proactive step in considering alternatives solutions available to you, and building a plan for achieving the most long-term sustainable success for you and your family.
A personalised approach
Grant Thornton’s personal insolvency team brings together more than 25 years’ experience helping clients find alternatives to bankruptcy and – where it is assessed to be the best route for you and your stakeholders – develop a process focused on minimal damage to you and creditors within the complex parameters that bankruptcies allow. Whether its bankruptcy or proposing alternate options to your creditors – which may be a Personal Insolvency Agreement or other informal arrangements – we take an independent, proactive and commercial approach when building recommendations for your situation.
Our experience means that we have the technical capability to understand and apply complex bankruptcy laws and opportunities to navigate them in the best possible way. But with that experience, comes a level of compassion and care for the process to be run successfully, sensitively and effectively. We calmly and professionally manage any conflict, diffuse tensions and negotiate strategic outcomes to achieve the best results or maximise recoveries for our clients, your creditors and other stakeholders.
Subscribe now to be kept up-to-date with timely and relevant insights, unique to the nature of your business, your areas of interest and the industry in which you operate.