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Bankruptcy and Insolvency Law

Bankruptcy and Insolvency Law

Do not ignore letters of demand, statutory demands and Writ of Summons from your creditors. A Writ of Summons from the court would compel your creditors to commence bankruptcy proceedings against you. You can be made a bankrupt even if you refuse to accept service of legal documents from your creditors.

Many people are of the view that it would be easier to be made a bankrupt as this will release them of their debts. Though this may be true, they fail to realise that after being made a bankrupt, their assets become vested with the Official Assignee (OA) and are divisible among their creditors. There is also a statutory requirement to file their income and expenditure statements and their statement of affairs. A bankrupt cannot obtain credit of more than $500.00 without first disclosing that he or she is a bankrupt. You may even have to surrender your passport and your travel overseas will be restricted. A bankrupt will be able to act as a Director of a company or even manage a business.

If you are facing bankruptcy, it would be prudent to try and enter into some sort of arrangement with your creditors to pay your debts by instalments or even reschedule repayment. You might be given time to liquidate your assets or seek some other alternative to repay your debts.

If you are facing bankruptcy, you need to consult a good solicitor before you make any decision concerning bankruptcy matters. This is where S Skandarajah& Co can help. Contact us if you require our assistance.