hi hooksie,
Basically the Australia Law states that Part X of the Bankruptcy Act
1966 allows for individuals to reach a compromise situation where you
avoid bankruptcy.
ALTERNATIVE TO BANKRUPTCY PART X OF THE BANKRUPTCY ACT 1966
Part X
"Debtors wishing to avoid bankruptcy may, with the sanction of their
creditors, have their property administered under Part X of the
Bankruptcy Act. In most cases Part X administrations may be expected
to provide a better return for creditors than would bankruptcy. At
the same time, debtors avoid the stigma and restrictions that
accompany bankruptcy.
There are various forms of Part X administration, which provide a
great deal of flexibility in their application, falling into three
groups:-
Deed of Assignment
Deed of Arrangement
Composition"
(1) WHAT IS A PART X?
"A debtor who wants to avoid bankruptcy and wishes to make a proposal
to his/her creditors for an "alternative arrangement" may, under the
provisions of Part X of the Bankruptcy Act, appoint a controlling
trustee or a solicitor to convene a meeting of creditors to propose
such an arrangement. Creditors at the meeting will consider the
debtors proposal and may adopt the proposal by special resolution. The
proposal need not contemplate payment of creditors in full. Such
alternative arrangements are... etc., etc."
http://www.horwath.com.au/services/insolvency/choices_personal.asp
Home: Services: Insolvency: Insolvency Choices: Personal Insolvency
Choices
In addition:
The Corporations Law and the Bankruptcy Act provide specific methods
of moratorium, reorganisation, or liquidation/bankruptcy.
For Individuals
"Arrangements under Part X of the Act avoiding Bankruptcy
A person who is insolvent may avoid bankruptcy by reaching an
understanding with creditors for the satisfaction of their claims:
- by assigning all divisible property to a Trustee for the benefit of
creditors
- by offering, in the form of money or other property, whether by
instalments or otherwise, less than the full amount due to creditors
in full satisfaction of their claims
- by coming to some other mutually acceptable arrangement
A person who is insolvent may avoid bankruptcy proceedings voluntarily
by lodging their debtor's petition."
What are the Remedies?
http://www.ipaa.com.au/page.cfm?page=4&category=1
Google search: "bankruptcy law Australia" "avoid bankruptcy Australia"
I hope this helps. If you need a list of available professionals who
can help you apply for Part X, I can possilby assist you in finding
someone in your area.
tlspiegel
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