Section 134 of the Bankruptcy Act states that a Trustee in Bankruptcy has the power to commence or defend legal proceedings. A Trustee in Bankruptcy may do this to collect assets for the bankrupt estate. In doing so a Trustee in Bankruptcy may need to instruct a lawyer to assist in assessing the merit of the legal proceedings.
Month: December 2014
Trustee to apply to court to carry out any function
A Trustee in Bankruptcy can apply to court under Section 139A of the Bankruptcy Act to seek assistance from the court to carry out any function defined
Trustee to apply to court for a warrant to seize property
Section 130 of the Bankruptcy Act states that a Trustee in Bankruptcy has the power to apply for court for a search and seize warrant. A Trustee in Bankruptcy may do this when assets or books and records of the bankrupt have been indentified. The Trustee in Bankruptcy may require the assistance of the court to access the assets or
Trustee to pay out mortgages
Section 136 of the Bankruptcy Act states that a Trustee in Bankruptcy has the power to pay out a mortgage of the debtor. This is required to enable the Trustee in Bankruptcy to realize the assets for the bankrupt estate. For example if the bankrupt holds shares but the shares are encumbered, the Trustee in Bankruptcy may firstly pay out
Bankruptcy Trustee to carry on the bankrupt’s business
A trustee in bankruptcy may continue to carry on the bankrupt’s business. Typically a trustee in bankruptcy would only do this if the trustee believed that the bankrupt’s business had a commercial value and could be sold for the benefit of creditors. If the bankrupt’s business had no commercial value then the trustee in bankruptcy may not take any steps
What powers does a Trustee in Bankruptcy have?
to sell property to obtain legal advice to carry on the bankrupt’s business to bring or defend any legal proceedings to pay out mortgages to apply to court for a warrant to seize property to apply to court to carry out any function to issue notices to obtain information to publically examine a bankrupt to convene a meeting of creditors
What is Bankruptcy?
Bankruptcy is a government legislated process that is designed to create a fair outcome for all involved when someone is unable to honour their debts. For the individual, it provides relief from the stresses of unmanageable debt and legal protection from their creditors. It also helps the creditors, in that it creates a system by which any recoverable funds are
Can I apply for bankruptcy whilst overseas?
Dylan called us from overseas and wanted to know if he could file for bankruptcy in Australia whilst he remained overseas. Dylan moved overseas when he lost his job in Australia. With this sudden loss of income and with no savings, Dylan had no ability to pay for his rent and his debts rapidly started to increase. He contacted ABS and
You do not get to pick and choose creditors when you file for bankruptcy
Susan and Ryan called Australian Bankruptcy Services for advice on filing for bankruptcy. Susan and Ryan have several credit cards and one personal loan and used the credit card to shop on-line. Susan loved shopping on-line so much that she wanted to know if she could keep her credit card if she filed for bankruptcy. In other words she wanted
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