Personal Insolvency

Corporate Insolvency

Worrells

PERSONAL INSOLVENCY

The following information outlines both the monetary thresholds and time limits that apply in relevant insolvency practices.

Income Thresholds before Income Contributions become Payable (after tax & s139N deductions):

  • $55,446.30 – No Dependants
  • $65,426.63 – 1 Dependant
  • $70,416.80 – 2 Dependants
  • $73,189.12 – 3 Dependants
  • $74,298.04 – 4 Dependants
  • $75,406.97 – 5+ Dependants
  • Maximum Dependant Income – $3,750.00

To be eligible to propose a Part IX Agreement:

  • $83,169.45- Income (after tax)
  • $110,892.60 – Available Assets (after secured debts)
  • $110,892.60 – Unsecured Creditors
  • $3,750.00 – Tools of Trade allowance
  • $7,700.00 – Motor Vehicle Allowance
  • $5,574.00 – Obtaining Credit without Disclosure

Notice to be given to creditors to lodge Proofs of Debt:
at least 21 days before declaration

Minimum time after declaration before payment of dividend:
No time Limit. The dividend may be paid immediately after the end of the lodgement period.

Minimum Dividend:
Bankruptcy trustees are not required to pay a dividend under $25.00 to any creditor.

Priority Claim for Employee:
A maximum priority dividend (including superannuation) of $4,400.00
The balance paid as a non-priority debt.
Notice period for bankruptcy meetings:
Reasonable notice of meeting
 
Deadline for Virtual Meetings:
Trustee to specify the end of voting
 
Holding Part X meeting:
within 25 business days from date of appointment
Holding change of trustee meeting:
At any time with 7 days notice of meeting
 
Streamlined Change of Trustee:
at any time with at least 10 days notice

The trustee is entitled to draw fees (has automatic approval) for fees up to an amount of $5,000.00

Minimum amount for issuance of a Bankruptcy Notice: $5,000.00
 
Compliance period: The debtor has 21 days to pay the debt or be deemed insolvent
Concealment of property from Trustee:
section 263 – 1 to 5 years or $1,000
 
Creditor lodging false claims to vote:
section 263C – 6 months
 
Failure to Disclose Property to Trustee:
section 265 – 1 to 5 years
 
Failure of Person to Attend Interview with Trustee:
section 267D – 6 months
Bankrupt obtaining credit of more than Statutory limit without advising of bankruptcy:
section 269 – 3 years
 
Failure to keep proper Books and Records:
section 270 – 1 to 3 years
 
Bankrupt leaving Australia with intention of not returning:
section 272 – 3 to 5 years

Worrells

CORPORATE INSOLVENCY

The following information outlines both the monetary thresholds and time limits that apply in relevant insolvency practices.

Holding first voluntary administration meeting:
within 8 business days after the administration begins.

Convening period to call second voluntary administration meeting:
20 business days from first business day after appointment.

Extension to convening period:
If the day after the administration begins is in December or is less than 25 business days before Good Friday, 25 business days beginning on that day, or if not next business day.

Holding Second voluntary administration meeting:
within 5 business days before or after the end of the convening period.

Holding initial creditors voluntary liquidation meeting:
within 11 days after appointment allowing for 7 days notice.

Holding other liquidation meetings:
At any time during appointment with 10 business days notice.

Final Meetings in voluntary liquidations:
At end of appointment with 1 month notice.

Excluded Employees:
Excluded employees can only receive $2,000 in relation to wages and $1,500 in relation to leave entitlements in priority to non-employee creditors. They will not receive a priority dividend for other entitlements.

Non-excluded employee:
No Limit. Non-excluded employees (not related to the directors) can receive their full entitlements.

Notice to be given to creditors to lodge Proofs of Debt:
at least 21 days before declaration

Minimum time after declaration before payment of dividend:
No time Limit. The dividend may be paid immediately after the end of the lodgement period.

Minimum Dividend:
Liquidators are not required to pay a dividend under $25.00 to any creditor.

Minimum amount for the issuance of a Statutory notice:
$2,000.

Compliance period: The debtor has 21 days to pay the debt or be deemed insolvent.

Non-Disclosure or Misrepresentation section 590(1) – $10,000 or 2 years or both

Knowingly Receiving property of company section 590(5) – $5,000 or 1 year or both

Frauds by Officers of company section 596 – $10,000 or 2 years or both

Falsification of company books and records section 1307 – $10,000 or 2 years or both

Providing False or Misleading statement section 1308 – $20,000 or 5 years or both

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