See How Our Team Helps You With Involuntary Bankruptcy
An Example of Involuntary Bankruptcy When We Paid a Dividend to Creditors at 59.43c/$
Background
We were approached by one of our clients, a law firm, who were pursuing unpaid debts from an individual on behalf of one of their clients, a small business owner. The solicitor sought Anna’s consent to act as trustee in bankruptcy, should the court make a bankruptcy order against the individual debtor who had failed to pay an invoice for a piece of equipment. The debtor had purchased the asset to start a beauty care business, however, she had never paid for it nor returned it to the creditor. While the creditor had pursued the debtor for either payment of or return of the equipment, it was later understood the equipment was missing.
How We Helped
Once the order was made, Anna and her team commenced the administration of the bankruptcy, which involved:
- Locating the debtor and explaining the bankruptcy process, including what to expect, what Anna's role was, and what the debtor's rights and obligations were.
- Providing creditors with regular updates about the progress of administering the bankruptcy.
- Providing the debtor with assistance to navigate the bankruptcy process and ensuring she met her obligations required under the Bankruptcy Act 1966.
- Conducting various searches, enquiries, and obtaining information from the debtor and other parties about the financial affairs of the debtor.
Current Results
- We have located and realised the missing equipment.
- We have identified real estate in the name of the debtor and realised it.
- We have paid the secured creditors' debts in full.
- We paid the petitioning party's costs incurred in obtaining the bankruptcy order in full. These legal costs were comparatively significant due to difficulties in locating the debtor.
- We have paid a dividend to ordinary creditors at 59.43 cents in the dollar.
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If you have a question, contact us directly or book a complimentary and expectation-free initial consultation.