Personal Debt

Corporate Rescue is aware that companies are made up of individuals that fullfill certain roles. Due to today’s Insolvency Laws a corporate collapse can require the need for individuals to seek protection from exposure to creditors. This exposure can arise from personal guarantees, working capital finance, equipment finance, director penalty notices, credit cards and more.

Many other factors can also trigger financial difficulties, and Corporate Rescue can work with you to recognise these signs early on. Corporate Rescue can guide you on the options available to deal with unmanageable personal debts.

Corporate Rescue and its affiliates have experience and expertise in all aspects of personal insolvency.

Bankruptcy provides protection for both debtors (bankrupts) and creditors. The bankrupt is protected from being pursued by most creditors (secured creditors are entitled to continue taking action) and they are released from most debts.

Bankruptcy protects the interests of creditors by having an independent person (normally a Registered Trustee or the Official Trustee in bankruptcy) appointed to investigate the bankrupt’s financial affairs. If sufficient funds are recovered a dividend will be paid to creditors of the estate.

Part X is part of the Bankruptcy Act that provides a framework for a debtor to formally deal with their creditors by making a proposal in satisfaction of their debts.

A proposal pursuant to Section 73 of the Bankruptcy Act 1966 is a formal agreement between a bankrupt, creditors and the registered Trustee that monitors the agreement. If creditors accept the Section 73 proposal, the bankruptcy is annulled and it is as though the bankruptcy never occurred.

Under a Section 73 proposal, the bankrupt is released from the restrictions of remaining in bankruptcy. In return, creditors would expect to be offered a higher return than they would have received in the bankruptcy.