OUR SERVICES
Personal Insolvency
Every financial situation is unique, which is why we develop customised solutions to help individuals and families find the best path forward. We specialise in personal insolvency, offering expert advice and assistance to those facing financial challenges. Our services cover both formal and informal insolvency processes.
BANKRUPTCY
Bankruptcy or Personal Insolvency is a legal process for individuals who can’t pay their debts. It gives someone in severe financial distress the chance to reset their financial affairs — most unsecured debts are wiped, and creditors can no longer take action to recover money. But it’s not without consequences. Going bankrupt means handing over control of certain financial decisions and assets to a Registered Trustee, who is appointed to manage the process.
In most cases, bankruptcy lasts three years and one day but could be extended to 5 or 8 years due to non-compliance in certain circumstances.
WHEN BANKRUPTCY MIGHT BE THE NEXT STEP
Many people reach this point gradually and often feel overwhelmed by the time they seek help. Knowing the warning signs is key.
- Struggling to pay multiple credit cards or loans
- Being chased by debt collectors or receiving legal notices
- Using new debt to pay off old debt
- Receiving a Bankruptcy Notice, Creditor’s Petition or Court Judgment
- Feeling stuck, anxious or like there’s no way out
If this sounds familiar — whether it’s your own situation or someone you’re advising — the earlier you act, the more options that are available.
With the right support, there are often better options available than people realise. Every situation is different. We work closely with individuals and their Advisors to explore the right solution and manage the process from start to finish.
HOW TO ENTER BANKRUPTCY
There are two main ways an individual can become bankrupt in Australia:
- Voluntary Bankruptcy (Debtor’s Petition):
You can apply for bankruptcy yourself by lodging a petition with the Australian Financial Security Authority (AFSA) or have your Trustee oversee the lodgement process for you. This is often done when debts become unmanageable, and you want relief from creditor pressure. - Creditor’s Petition:
A creditor can apply to the Federal Court to have you made bankrupt if you owe them $10,000 or more and haven’t complied with a Bankruptcy Notice.
WHAT IS A REGISTERED TRUSTEE?
A Registered Trustee is an independent professional authorised under the Bankruptcy Act to administer personal insolvency matters in Australia.
Once appointed, the Trustee’s role includes:
- Taking control of the bankrupt’s divisible assets
- Communicating with creditors and handling claims
- Investigating the financial affairs of the bankrupt
- Distributing funds to creditors fairly and legally
- Supporting the individual to comply with bankruptcy obligations
DVT Mcleods is more than just a firm with Trustees, we have a hands-on team of experts with decades of experience, guiding individuals and their advisors through complex personal insolvency situations with professionalism and empathy.
HOW WE CAN HELP
Whether you’re an individual in financial distress or a professional advisor helping a client, the proper support makes a real difference. We don’t offer one-size-fits-all advice. Instead, we take the time to understand the circumstances, explain the options, and guide people through the process from start to finish.
Our Registered Trustees and insolvency professionals provide services under the Bankruptcy Act, including formal appointments and tailored advice. We can be appointed under the Bankruptcy Act for the following services:
- Part IV | Bankruptcy
- Part X | Personal Insolvency Agreement
- Part XI | Administration (Bankruptcy for Deceased Estate)
- Section 66G | Court Appointed Trustees for Sale of Property
Why Choose Us
For Individuals
- A fresh start, managed with professionalism and care
- Step-by-step guidance through stressful processes
- Protection from creditor action
- Honest, practical advice based on your unique situation
For Advisors
- Strategic thinking and legal compliance
- Clear communication throughout
- Support that protects your relationship with the client
- Confidence that experts are handling the matter
Act Early, Act Now - Free Consultation
If you or someone you’re advising is facing unmanageable debt or has received a bankruptcy notice, don’t wait. Early advice opens up more pathways, including options that may avoid bankruptcy altogether.
Contact us today for a free, confidential consultation.
Personal Insolvency is essential in the following areas:
PART IV BANKRUPTCY
PART IV BANKRUPTCY
A legal reset for those who can no longer meet their financial obligations.
Bankruptcy is a formal process under the Bankruptcy Act that releases a person from most unsecured debts. A Registered Trustee from our team is appointed to manage the individual’s financial affairs during the bankruptcy period.
Bankruptcy can be initiated by the individual or enforced by a creditor through a court petition.
DURATION:
• Bankruptcy typically lasts 3 years and 1 day
• Bankruptcy generally lasts 3 years and 1 day from the date of lodgement of a Statement of Affairs but can be extended by the trustee for non-compliance. In a Creditors petition, a person remains bankrupt until the Statement of Affairs is lodged at which time the 3 years begins. During this time, there are restrictions on things like borrowing money, owning certain assets, and travelling overseas.
- Most debts cleared, with a chance to rebuild
- Control handed over for certain assets (e.g. investment properties)
- Income contributions if earnings exceed a set threshold
- Travel restrictions and credit reporting impacts
- Protection from creditor harassment and legal action
- A structured solution when other options are no longer viable
- Support in preparing clients before the appointment
- Transparent administration and regular updates throughout
PART X PERSONAL INSOLVENCY AGREEMENT (PIA)
PART X PERSONAL INSOLVENCY AGREEMENT (PIA)
A flexible, legally binding alternative to bankruptcy.
A PIA is a formal arrangement between an individual and their creditors to repay part (or all) of what’s owed over time, without going bankrupt. It can involve instalments, a lump sum (sometimes funded by third parties), or asset sales.
This option suits individuals who can contribute something and want to protect their reputation, employment, or business from the broader impacts of bankruptcy.
TIMEFRAME:
- Approximately 4–8 weeks from proposal to approval
- Repayment terms can run from 6 months to 3+ years, depending on the deal
- A way to avoid bankruptcy and its long-term impact
- No income contributions or travel restrictions
- The flexibility to continue running a business (in most cases)
- A commercially sound, court-compliant solution
- Protection of the client relationship
- Guidance on when a PIA is feasible and how to structure proposals
PART XI ADMINISTRATION
PART XI ADMINISTRATION
When someone dies with more debts than assets.
When someone passes away with more debts than assets, their estate can be placed into administration under the Bankruptcy Act. A Registered Trustee manages the estate, ensuring it is dealt with properly and fairly — relieving stress from families and protecting all parties legally.
WHEN IT’S APPROPRIATE:
- Executor is unsure or unwilling to manage an insolvent estate
- Creditors are pursuing payment
- There’s potential for personal liability or family disputes
- A professional, respectful process during a difficult time
- Removal of personal liability or risk for executors and beneficiaries
- Confidence that the estate is being handled legally
- Certainty and compliance for complex estate matters
- Expert handling of creditor claims and disputes
- A safe and structured path to close the estate
SECTION 66G COURT APPOINTED TRUSTEE FOR SALE OF PROPERTY
SECTION 66G COURT APPOINTED TRUSTEE FOR SALE OF PROPERTY
A solution for co-owners who can’t agree on what to do with a property.
When two or more parties own a property and can’t agree on what to do with it — for example, former partners, siblings, or investors — the Court can appoint a Trustee to sell the property on behalf of all owners.
Our team includes professionals qualified to act in this role, with experience in managing sensitive, high-conflict property sales.
WHEN TO CONSIDER THIS OPTION:
- Deadlock between co-owners (e.g. one wants to sell, the other doesn’t)
- Separation, estate disputes, or failed joint investments
- No practical agreement after reasonable negotiation
- A professional sale process without bias
- Closure and access to their rightful share
- Avoidance of drawn-out legal battles
- An independent party that can step in and resolve matters efficiently
- Assurance that court expectations will be met
- Confidence that the process will remain neutral and commercially sound
