P A Lucas & Co
Accounting in Brisbane

Bankruptcy is a process whereby the financial affairs of a person who is insolvent are managed by a trustee in bankruptcy. The Bankruptcy Act 1966 deals with all personal insolvency and only individuals can go bankrupt and not companies. Note that creditors can also apply to the Court to make you bankrupt if they can satisfy the court that you owe them money overhead a minimum amount. Sell your assets (Note: some riches are immune from sale). Piece X Personal Insolvency Agreements (BIA) produce a debtor in financial difficulty with a formal mechanism where they can come to a binding arrangement with their creditors and avoid bankruptcy. A creditors meeting is held where creditors consider the proposal. Acceptance of the proposal requires a yes’ vote from a majority of creditors who represent at minimum 75 of the dollar value of the voting creditors debts(referred as a particular resolution). Portion IX (Debt Agreements) was introduced into the Bankruptcy Act in 1996 with the aim of providing low income debtors and their creditors with an informal and inexpensive alternative to bankruptcy and the more formal and expensive Piece X Arrangements. A Debt Agreement can be proposed by a debtor who has: The debt agreement proposal is sent to creditors to vote upon. A proposal is accepted if a majority of creditors in value vote in Cavour of the debtors’ proposal. Controllership, which includes where a receiver or receiver and manager is appointed and. A Court Liquidation occurs when and if the Court exercises it discretion to order the winding up of the company, subsequent consideration of an application filed with it. The applicant is usually a creditor, although others including the company can apply. A Provisional Liquidator can be appointed any time after the application for the winding up of a company is lodged. The purpose of appointing a provisional liquidator is to exercise interim handle over the assets and affairs of the company until the Court hears the winding up application and decides whether to appoint a liquidator or not. The company is placed into Voluntary Liquidation by a resolution of its members. For a company to enter into a Members’ Optional Liquidation, the company must actually be solvent. A company can also be placed into Creditors’ Voluntary Liquidation by creditors so resolving at a meeting of creditors held during a Elective istration or Deed of Company Arrangement. A proposal for the company’s tomorrow will be put to creditors, who may decide to accept a Deed of Company Arrangement or to liquidate the company. A Deed of Company Arrangement is a procedure permitting a company to make a compromise or arrangement binding on all its creditors. If the company’s undertakings under the Deed are not carried out, the Deed will fade and the company will usually be wound up by means of a creditors’ voluntary winding up. A controller of property of a corporation is a Receiver or Receiver and Manager or anyone else in possession or control of corporate property for the purpose of enforcing a charge. The controller has the power to realism company riches for the gain of the appoint or.