In some circumstances, it is possible to avoid bankruptcy. Alternatives to bankruptcy include a Part IX debt agreement or Part X personal insolvency agreement. These are beneficial to both creditors and debtors since they are generally less costly than bankruptcy, meaning that the debtor’s pool of assets will remain higher. Another alternative might be an informal agreement between the debtor and the creditors. The informal agreement will usually outline a payment plan or scheme to settling the debt. A Bankruptcy Solicitor will usually assist the debtor prepare this agreement.
Although the above alternatives are often much more beneficial than bankruptcy, they are subject to approval by creditors. In circumstances where a creditor has initiated or sought legal recovery action, it may not be possible to avoid bankruptcy.
In circumstances where you are facing bankruptcy litigation, it is important to consult the services of a Bankruptcy Lawyer as soon as possible so that you position is not prejudiced. Our Bankruptcy Lawyers can advise you on the options available to you.
We have branch offices conveniently positioned across the Sydney metropolitan area including in Liverpool, Hurstville and Parramatta. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.
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