Bankruptcy

Who can become bankrupt?

Bankruptcy only applies to individuals, not companies. When you are declared bankrupt, you are declared by law unable to pay your personal debts.

How do you become bankrupt?

Every situation is different and there are a variety of reasons a person may become bankrupt, from personal relationship breakdowns, health concerns, loss of employment, debt issues and more.

There are two distinct ways you can become bankrupt:

One – presenting your debtor’s petition, referred to as voluntary bankruptcy.

If you are unable to pay your debts and cannot come to suitable repayment arrangement with your creditors, you may choose to voluntarily lodge a petition to become bankrupt.

Two – a creditor (someone you owe money to) makes an application to court to make you bankrupt, referred to as involuntary bankruptcy.

If you are unable to pay your debts and have been unable to enter into an arrangement with your creditors and you haven’t voluntarily made yourself bankrupt, a creditor to whom you owe $5,000 or more may apply to the court to have you made bankrupt.

Bankruptcy provides the mechanism for the following objectives to be met:

• Provides relief to the Debtor by enabling them to be released from the burden of their liabilities and opportunity for a fresh start (after due process).

• Provide equitable distribution of essentially all the Bankrupt’s assets to all Creditors; and

• Enable an investigation of the Bankrupt’s affairs and the circumstances leading up to their insolvency.

How can Offermans help?

Experience: Whether you are considering voluntary bankruptcy, or a creditor is bringing it on, you will have many questions about the process and what it means for you now and in the future – Offermans has the answers.

Expertise: Offermans has an experienced team of local experts who can help you assess your situation, look at ALL of your options, make a plan and see it through.

Ethics: Just the word bankruptcy can bring about feelings of negativity, but at Offermans we see it as an opportunity to start a-fresh. We understand and respect the privacy of our clients’ personal journeys and guarantee confidentiality.