Bankruptcy protects the director from debts owing by his or her insolvent company

Bankruptcy protects the director from debts owing by his or her insolvent company Bankruptcy Protects The Company Director When a company director becomes bankrupt, the liabilities owing by the insolvent company for which the director is liable are caught by the director’s bankruptcy. This includes monies owing to the ATO, personal guarantees and any claim …

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Bankruptcy and family members

Bankruptcy and family members When looking at bankruptcy as a solution for over whelming debt, it is worth looking at what implications’ bankruptcy will have for family members.  We are often asked: ‘Can my spouse or partner be chased for monies owing if I become bankrupt?’The short answer is no. For the spouse or partner …

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Saving money during bankruptcy

Saving money during bankruptcy Can I save money during bankruptcy? Once a person becomes bankrupt that person can save from his or her wages provided the savings remain in the bank account. The critical element is that the savings must remain in the bank account and not be put on deposit or used to buy …

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Persons who need bankruptcy do not need to fund the cost of liquidating their company

Personal bankruptcy as a company director Persons who need bankruptcy do not need to fund the cost of liquidating their company Where a company becomes insolvent and the sole director needs to file for bankruptcy, the director should assess the financial position of the company before acting. This is important as there are timing issues …

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