What is Liquidation?

Liquidation is a term used in bankruptcy in regard to turning solid assets into liquid, or cash, so as to pay the money you owe to creditors. It is a term used in Bankruptcy meaning that you are forced to sell assets and pay your bills.
What happens once I become bankrupt?

Through the natural course of bankruptcy, a trustee will be appointed which over the 3 years will realise all assets and resources as well as all creditors and arrears of debts. The trustee will then liquidate the estate in order to distribute the liquidated assets amongst creditors, in a way that is proportionate to the debts owed by the bankrupt – i.e. the creditors with the greatest amount owed to them should receive the highest proportion of any funds recovered.
Can I annul my bankruptcy?

Fortunately there are provisions within the Bankruptcy Act that enable bankrupt to have their bankruptcy annulled through a Section 73 proposal. At Insolvency Guardian we can utilise mechanisms within the Bankruptcy Act which allow for the annulment of bankruptcy through the provisions of Section 73, which have the same effect as if the bankruptcy had never occurred. This gives the individual an opportunity to have a ‘clean slate’, free from all debts accrued the time of
bankruptcy.

Rather than following the natural course of bankruptcy over 3 years or more, which would result in a catastrophic credit record and a painful and arduous procedure, a Section 73 proposal is an approach where “everybody wins”.
What if I don’t want to go bankrupt? Can someone make me?
The repercussions of creditor’s claims can often result in bankruptcy, regardless of whether or not it was the individual’s choice to enter bankruptcy, or if it was filed by a creditor. However, bankruptcy is far from the end of the world for the person who undergoes bankruptcy.

I am in financial crisis! What now?

As your Insolvency Guardians we exercise the best possible course of action for you to get back up and running, eliminating residual effects and hindrances of past financial situations to give you the best possible result. Having experience and skills specialising in Section 73 proposals, we can combine this with our proven strategies and methods to bring you through bankruptcy unscathed, ready to start over.

Bankruptcy needn’t be the end of the world, indeed it can be the springboard for a whole new start! Through the use of our proven strategies and with our expert knowledge we can utilise Section 73 of the Bankruptcy Act to turn potential years of bankruptcy to months, and through an annulment it can sometimes be as if the bankruptcy never occurred in the first place.
Need more help? Call Insolvency South Australia on 1300 60 70 60 today for your free consultation with one of our trained professionals.