All About Bankruptcy – The Bankruptcy Process
Bankruptcy may seem daunting, but many individuals and businesses go through it with the help of dedicated bankruptcy lawyers in Sydney. It’s not ideal, but with the right legal guidance, bankruptcy can be managed effectively.
Let’s take a closer look at the bankruptcy process and what to expect if you need to hire bankruptcy or insolvency lawyers in Sydney.
Consult With a Licensed Trustee
The first step in filing for bankruptcy is to consult with a reputable trustee like the leading bankruptcy lawyers in Sydney. They will help you understand the difference between bankruptcy and insolvency, as the latter is a state of financial distress where debts are higher than assets. For example, if your business is insolvent, it is at risk of becoming bankrupt, which is when the court orders how to deal with unpaid obligations, whether it be selling assets or erasing certain debts.
Comprehensive Financial Review
Following an initial discussion with a bankruptcy lawyer in Sydney, they will closely go over your current finances, whether it’s for a personal or business bankruptcy. This review includes assets, income, revenue, expenses and debts. The more information you have prepared, the easier the review process is, although experienced lawyers are patient and understand this can be a complex and overwhelming process.
Proceed With Filing
Once bankruptcy and insolvency lawyers in Sydney have reviewed your financial situation, they will provide a legal recommendation on how to move forward with a bankruptcy filing. Your trustee will guide you through the filing process, which involves declaring bankruptcy with the Australian Financial Security Authority (AFSA).
The appointment of a trustee protects you from legal action by creditors, as the trustee can sell your assets and use any earned income over a specific amount to cover debts moving forward. They will also help you navigate the numerous consequences of bankruptcy and how filing may impact your future income and business.
Contact Bankruptcy Lawyers in Sydney
Lancaster Law has experienced bankruptcy and insolvency lawyers in Sydney who can help you through economic distress, unpaid debts, and court orders. Contact us online or on 02 4227 1177 to get started.
