Acts of Bankruptcy – s40(1)(c) Bankruptcy Act 1966.

bankruptcy

How does a Bankruptcy Notices under the Bankruptcy Act 1966 work?

BANKRUPTCY ACT 1966 – SECT 40(1)(b)

Acts of bankruptcy

(1)  A debtor commits an act of bankruptcy in each of the following cases: ….

                     (c)  if, with intent to defeat or delay his or her creditors:

                              (i)  he or she departs or remains out of Australia;

                             (ii)  he or she departs from his or her dwelling-house or usual place of business;

                            (iii)  he or she otherwise absents himself or herself; or

                            (iv)  he or she begins to keep house;

Source: http://classic.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s40.html

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Need finance for your business – big or small? Even if you need funds for a tax debt or other problem – we may be able to assist – click here for next steps.

More info on Bankruptcy?

What is a Bankruptcy Notices under the Bankruptcy Act 1966? The Act defines Bankruptcy Notices as follows:

Do you have a problem with a Bankruptcy Notices? Have you been served a Bankruptcy Notices? Does someone owe you money and you’d like to issue a Bankruptcy Notices?

Any questions about Bankruptcy Notices? Live chat with us in the bottom right corner or call us on 1300-327123 till late, or alternatively complete the form below and we’ll reply to you promptly.

Watch our video tutorial, live chat with us in the bottom right corner or call us on 1300-327123 till late.

We offer a free first appointment to anyone who is in financial trouble and can assist and advise on any Bankruptcy Notices or a related matter. To book your free appointment – click here.

Mark J. Smith
Mark J. Smith

To learn more about Mark Smith, his training and expertise – click here to go to his profile page

Connect to Mark on LinkedIn.

Follow Mark on Twitter: https://twitter.com/mrmarkjsmith

Transcript

well, welcome back to business asset protection where today we’re having a look at the bankruptcy act. this is part four of our series today we’re looking at section 40 (1) (C) and different ways that a person might try to defeat or delay his or her creditors so come join us okay well here we are in section 40 (1)(C) and we’re looking at a a debtor commits an act of bankruptcy in each of the following: so they’re all equal okay so if if someone gives you a bankruptcy notice for a hundred billion dollars and you don’t pay it well that that is equal to one act of bankruptcy section 40(1)(C) a debtor commits an act of bankruptcy and each in each of the following cases we’ll see as if with intent to defeat or delay his or her creditors well let’s have a look at this very closely so if , if so that’s the question if if with intent to defeat or delay his or her creditors okay so let’s have a really close look at this that’s section 40(1)(c) if we intend to delay to defeat to defeat which is final or to delay which just means it can only be temporary only has to be slight um his or her creditors in brackets one he or she departs or remains from australia so if you’ve departed um well that may be – that may be an event bankruptcy now it doesn’t it doesn’t automatically follow but there are some instances so you do you depart australia or you remain out of australia and and it comes down to – with intent to delay – or defeat his or her creditors. so again it’s not automatic um two he or she departs from his or her dwelling or usual house OR place of business so we’re gonna maybe actually have a quick look at some of this actual case law and we’ll see what it says. 3 he or she otherwise have since himself or herself so that can be you know from australia it could be from you know bondi if that’s where you um depart and you know you just go missing or number four if he or she begins or begins begins to keep house. again it doesn’t have to be permanent but that in itself just the beginning to keep house can can if with intent to defeat or delay his or her creditors he or she departs or remains out of australia he or she departs from his or her her dwelling house or usual place of business or so he or she departs his or her dwelling OR usual place of business so in other words you do a runner. all right well i’m just going to refer a little bit to this book that i’m reading and i think it’s really it’s quite complex it’s a little bit technical but i think if you’ll allow me to just um refer to this book i think you’ll get a little bit out of it um what is it what does it mean and what happens in these circumstances if one of these four tests is is present? that they departed or remain out of australia? departed from his or her home or usual place of business? as absenting himself or herself? or beginning to keep house that is to remain in one’s house now this is what keeping house means it means to remain in one’s house and refusing entry to others to serve a process so just that in itself could could easily be enough it’s not guaranteed you’ve got the covid virus and you’ve been told to quarantine that that would be a perfect excuse? if you’ve got cold or flu-like symptoms that too might be a reason temporarily so to keep house the onus is on yes so the creditor the person that’s trying to bankrupt um is has the owners to establish that the debtor’s intent is to delay or defeat okay so um it does not necessarily have to be the soul intent if it’s if it’s like a collateral attempt intent that that may well be enough um this can be proved directly through the use of statements so um for instance ralph wants to come back he’s choosing to be way you know these these inferences that you can be that can be drawn um use of statements by the debtor or indirectly or indirectly thanks john. um by inference by pro by proving the existence of circumstances which must necessarily cause delay. and which the detour must be presumed to have foreseen or intended to be to be or intended as a necessary result of what he or she was doing. so we could talk through some examples of this defeating or delaying a creditor need not be the debtor’s sole intent in leaving australia or remaining out of australia. now these these cases were pre-covid. so again there’s probably some argument to say well i’m remaining out of australia because it’s impossible to get back or i’d have to do two weeks quarantine like there may be some this there’s some grey here so um possibly so it need not be the need not be the sole intent as long as it’s an intent it’s not enough to simply show that the letters the debtor’s conduct has caused delay it has to be intent intention of delaying or defeating.
so it’s it’s a bit technical. i if you’re if you’re either one of in one of these two situations you’re the debtor and you’d like you know to talk through some of the options, we’ve got a pre-insolvency um we’ve got a pre-insolvency division / work and we can do this same work for the creditor so we can talk through and give you some advice on pre-insolvency issues um with quite a bit of precision um these things can be can be uh the absence is they can be an ongoing event of uh bankruptcy so uh it need not uh it could have started ten years ago um if if a person’s uh remaining out of australia because they know the moment they step back in the country uh something’s gonna happen well that in itself may be an event so there can be an ongoing or uh there’s a continuation um these are continuing acts of bankruptcy so we’re going to look at some of the other bits um of the act uh gradually throughout the series um there’s a time element um in in many of these so these can be an ongoing act uh and if you want to have a read of something case law i can make contact with me use our chat tools in dc partners dot solutions bottom right hand corner um of your screen uh there’s a chat tool so join us there um yeah so there is some case law uh if you want some you know general advice um now if you’ve got someone that’s in this position where uh you know they’re keeping house uh they are absent from australia uh they’re remaining outside of australia uh all these kinds of issues uh they’ve done a runner from their usual house um they’re not telling you where they are they’re not answering the phone they are answering the phone that they’re not they won’t tell you they want some of these uh actually.
matthew taunton there you go um uh refused to give us uh this is a guy we’re going to um mention and uh he’s he’s uh one of our villains. so you’ll you will find out uh he’s not there yet but uh he’s going onto our blog i promise you i promise you he’s going there so look uh these are some of the cases. um uh the technical as i said uh you want to talk through some of the different details give us a call 1300 327123 um if you’re in one of these positions and uh you need money uh but you know maybe you’ve got a temporary problem well we might still be able to help you 1300-327123 uh we’ve got uh tax debt um type uh facilities um you know if you’ve got a tax problem um and maybe you’re in that position where you’ve got the financial difficulty we we possibly can help you uh on either side of the fence uh the debtor site or the creditor site so give us a call 1-300-327-123 got any questions uh you can chat with us anytime uh www.dcpartners.solutions bottom right hand corner user check tools thanks very much

Acts of Bankruptcy – s40(1)(b) Bankruptcy Act 1966.

bankruptcy

How does a Bankruptcy Notices under the Bankruptcy Act 1966 work?

BANKRUPTCY ACT 1966 – SECT 40(1)(b)

Acts of bankruptcy

(1)  A debtor commits an act of bankruptcy in each of the following cases: ….

(b)  if in Australia or elsewhere:

                              (i)  he or she makes a conveyance, transfer, settlement or other disposition of his or her property or of any part of his or her property;

                             (ii)  he or she creates a charge on his or her property or on any part of his or her property;

                            (iii)  he or she makes a payment; or

                            (iv)  he or she incurs an obligation;

                            that would, if he or she became a bankrupt, be void as against the trustee;

Source: http://classic.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s40.html

Need finance?

Need finance for your business – big or small? Even if you need funds for a tax debt or other problem – we may be able to assist – click here for next steps.

More info on Bankruptcy?

What is a Bankruptcy Notices under the Bankruptcy Act 1966? The Act defines Bankruptcy Notices as follows:

Do you have a problem with a Bankruptcy Notices? Have you been served a Bankruptcy Notices? Does someone owe you money and you’d like to issue a Bankruptcy Notices?

Any questions about Bankruptcy Notices? Live chat with us in the bottom right corner or call us on 1300-327123 till late, or alternatively complete the form below and we’ll reply to you promptly.

Watch our video tutorial, live chat with us in the bottom right corner or call us on 1300-327123 till late.

We offer a free first appointment to anyone who is in financial trouble and can assist and advise on any Bankruptcy Notices or a related matter. To book your free appointment – click here.

Mark J. Smith
Mark J. Smith

To learn more about Mark Smith, his training and expertise – click here to go to his profile page

Connect to Mark on LinkedIn.

Follow Mark on Twitter: https://twitter.com/mrmarkjsmith

Transcript

welcome back mark smith here from business asset protection we’re a division of dc partners solutions uh we’re having a look at s40 of the bankruptcy act. and we’re actually into part 3.

so today we’re looking at s40(1)(b) and we’re looking at transactions that are voidable against your future bankruptcy trustee.

okay so here we are in s40 and we’re going to be nice and familiar.

again if you’re looking at these make sure you’re looking at the most recently in force

version of the bankruptcy act 1966.

because it does change all the time. even if you google it you will probably come to the wrong version. so to get to that latest version, go to this series,
you can just click on view series and view the latest. and we’re going to administration proceedings there you go s40. so we’re looking at section today well we’re looking at s40(1)(b). so this is where a debtor commits an act of bankruptcy. in each of the following. so there’s many many many of these and this particular one we’re looking at today s40(1)(b). IF in australia or elsewhere he or she makes a conveyance. now we have a look at the definition of conveyance and i’ve got the definition up there for you to have another look at it’s it’s a way of disposing of or getting rid of makes a conveyance transfer settlement that may have a particular meaning. so we should we should look up a settlement,
uh or other disposition. so that leaves it very open. it’s another way of disposing of his or her property, or of any part. so you just get rid of the juices part. or a small part. or any part of his or her property. so it must be his or hers to begin with. and it’s disposed of um in australia or elsewhere you can be a timbuktu.

you could be on the moon. it wouldn’t matter where it was. so that’s only that’s only part one,

way number one. he or she creates a charge on his or her property. now here we go we looked at this in up. above we said that that wasn’t necessarily to do with security?
but here it’s where he or she creates a charge on his or her property? and we should again, very technical. but what is what does the word charge mean? we should have a look at this and i’ll try and pop that definition up over my shoulder. here so you can have a look. he or she makes a payment.

BROAD. or he or she incurs an obligation. so you go and borrow 100 million dollars when you know there’s no possible way that you could uh service it. so you get you charge on your property. you make a payment. you give away 5 million bucks. and  in circumstances where you can’t pay your other bills. these would be um, sorry so, if in australia they do all these things, that would IF he or she became bankrupt, IF he or she became bankrupt would be void as against the trustees. so this now brings us into s120, s121 and s122. these voidable transactions. so it’s it’s a absolute pandora’s box and just looking further at this word charge, i’ve done some research off-air. and it would appear to me that there’s a very broad interpretation of the word charge. so it basically is going to be mortgage or indebtedness or liability. you could even think of it in terms of hocking. uh you’re going to hock some piece of property uh. it could be big or small. it could be centrepoint tower. you could be you you’ll hock your car um. you create a charge in circumstances that would IF you became bankrupt, be void against your trustee. so it’s something that can be unraveled at at a later point? very broad. very very very broad. so we’re going to have a look at um we haven’t got into voidable transactions. there is, we’re only at at s40(1)(b). so we’ve had a look at clause g. which is bankruptcy notices. uh we’ve had a look at clause (a). if you make a conveyance um for the benefit of your creditors generally. and also these are the ones that would be void uh as against your trustee. so there’s a lot more to go through. and i hope you’re getting the gist of just how broad these powers are? so if you’re in the position where someone has served a bankruptcy notice on you? you think you’re insolvent? you can’t pay your bills? or you’ve got someone else who, you’re a small business? and you’ve got someone that owes you money? and someone’s making payments, incurring obligations, creating charges on their properties, conveying parts of their property, or all of their property? um it’s, it would be really good to talk to you. um give us a call on 1300-327123. uh chat with us at the website, using the tools down in the bottom right hand corner of website. this one, bottom right hand corner uh on our webpage www.dcpartners.solutions – we’ve got an instant message tool .

there you can upload your documents. um as whether you’re, you know you’ve been served a bankruptcy notice? or you’ve got someone who’s indebted to you? and IF you’re looking for someone that’s very very skilled at this debt recovery stuff. so um come and have a talk to us. the first meeting’s obligation free. won’t cost you anything. and we’ll tell you uh very clearly very quickly whether we can or we might be able to help you. we we may not be able to say yes, we definitely can help you but we can give you a clear indication of whether we think we might be able to help you. so happy easter.

today’s the friday the 2nd of april 2021. this is probably going to air on the 3rd April 2021, um but we’re available uh you know very long hours, money never sleeps so they say uh – 1300-327123. or use the instant message chat uh tool uh in the bottom right corner of our screen on www.dcpartners.solutions

so thanks for tuning in uh

next we’re going to get into section 40(1)(c) of the Bankruptcy Act.

many many other exciting ways uh that you can um uh give the strong hint that you might have committed an act of bankruptcy

thanks very much. 1300-327123 or chat with us bottom right corner of our screen … www.dcpartners.solutions

Acts of Bankruptcy – s40(1)(a) Bankruptcy Act 1966.

bankruptcy

How does a Bankruptcy Notices under the Bankruptcy Act 1966 work?

BANKRUPTCY ACT 1966 – SECT 40

Acts of bankruptcy

(1)  A debtor commits an act of bankruptcy in each of the following cases: ….

(a)  if in Australia or elsewhere he or she makes a conveyance or assignment of his or her property for the benefit of his or her creditors generally;

Source: http://classic.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s40.html

Need finance?

Need finance for your business – big or small? Even if you need funds for a tax debt or other problem – we may be able to assist – click here for next steps.

More info on Bankruptcy?

What is a Bankruptcy Notices under the Bankruptcy Act 1966?

Do you have a problem with a Bankruptcy Notices? Have you been served a Bankruptcy Notices? Does someone owe you money and you’d like to issue a Bankruptcy Notices?

Any questions about Bankruptcy Notices? Live chat with us in the bottom right corner or call us on 1300-327123 till late, or alternatively complete the form below and we’ll reply to you promptly.

Watch our video tutorial, live chat with us in the bottom right corner or call us on 1300-327123 till late.

We offer a free first appointment to anyone who is in financial trouble and can assist and advise on any Bankruptcy Notices or a related matter. To book your free appointment – click here.

Mark J. Smith
Mark J. Smith

To learn more about Mark Smith, his training and expertise – click here to go to his profile page

Connect to Mark on LinkedIn.

Follow Mark on Twitter: https://twitter.com/mrmarkjsmith

Transcript:

happy easter it’s mark smith here from business asset protection, a division of dc partner solutions
well we’re continuing part two of our series, on … part two of our series on s40 of the bankruptcy act
and uh it’s only a small section but wow isn’t it uh incredible?
so we’re gonna have a look now at s40(1)(a) and maybe we’ll get to b as well?
so sit back and enjoy
okay well now we’re looking at uh section 40(1)(a)

and we probably should have a look at b as well here because uh this is probably not going to take a huge amount of time
but these are acts of bankruptcy which the court can take into consideration
uh this is fit within uh the bankruptcy act
acts of bankruptcy proceedings in connection with bankruptcy
so uh when there are proceedings or if there are proceedings uh a court can take these things into consideration as proof of your bankruptcy
um and let’s probably we should just actually have a look at the word bankruptcy and just see what it actually means
um so this is a little bit of interpretation max so let’s have a quick look at the word bankruptcy bankrupt in relation to uh jurisdiction or proceedings means a jurisdiction or proceedings by virtue of this act.
bankrupt means a person against whose estate a sequestration order has been made or who has become bankrupt by virtue of them presenting their own debtors petition
so a bankrupt is a person whose estate is under administration
basically so that’s um that’s a very key concept
let’s now have a look at … a debtor commits an act of bankruptcy in each of the following cases and there’s quite a few here
so we’re not going to go through them all today
but let’s have a look at section 40(1)(a) of the Bankruptcy Act 1966.
and we’ll see how we go
so it’s um in in australia or elsewhere. so you could be in fiji for instance
and you make a conveyance
in other words that means you transfer you give away you move you kind of value something so you convey or assign his or her property
so that could be shares
that could be it doesn’t mean securing, giving away security so in other words mortgaging them it means conveying or partying with so losing control of and again this wouldn’t be a um one where a security when a yeah where a secured party sells or conveys it’s where his or her property is conveyed uh i think the assumption here is is conveyed by him or her for the benefit of his or her creditors generally so when a person’s personal assets are conveyed or assigned uh for the benefit of his or her creditors generally uh well that would be indicative of your bankruptcy so um so there’s clearly exceptions to this it suggests if it’s for the benefit of his or her uh creditors well if you were to transfer your uh assets not for the benefit of his or her creditors but you transfer them or assign them nevertheless that might be captured under a different section but this is ones where you’re disposing of your assets for the benefit of your creditors that’s indicative and the court can take that into consideration and later on we’re going to go and have a look at sections 120 to 122 these avoidable transactions so let’s say you give away your assets but not for the benefit of your creditors let’s say you gave the way to your children well we’re going to have a look at really this next section we won’t do it today in this particular video but it’s where you give away your where you make a conveyance that would be void if he or she became bankrupt would be void so this is another way that there are many many ways so we’ll just stick with that this is a very simple concept it’s uh in australia or elsewhere so it doesn’t matter if you go to china you go to russia you go to the other you go to the moon it could be elsewhere other than in australia or in australia. he or she makes a conveyance of or assignment. this is a technical area. if you want to talk about this uh with anyone uh if you’ve got assets well let’s say you’ve got a creditor and they have conveyed or assigned their assets for the benefit of some other credit but not you? that still may be something you can do? so we can talk to you about that 1300-327123 or uh bottom corner on our website, use the instant chat tools on our website www.dcpartners.solutions

uh and you can chat with us uh about that particular situation you can certainly using the instant uh chat tools send us some documents. uh we’ve got forms down the bottom of this particular blog. there’s a form that allows you to upload some documents. so if you’re in that position where someone has conveyed or assigned their assets. uh for the benefit of some other creditor, other than you. um again there’s exceptions, so secured creditors but if they give it away for unsecured creditors or maybe they uh you know try and hide their assets and give them to their children or something like that is an act of bankruptcy able to be unwound? very cool okay got any questions give us a call 1300-327123.

use the instant chat tools on our website www.dcpartners.solutions thank you very much

Acts of Bankruptcy – s40(1)(g) Bankruptcy Notices

bankruptcy

How does a Bankruptcy Notices under the Bankruptcy Act 1966 work?

BANKRUPTCY ACT 1966 – SECT 40

Acts of bankruptcy

(1)  A debtor commits an act of bankruptcy in each of the following cases: ….

… (g)  if a creditor who has obtained against the debtor a final judgment or final order, being a judgment or order the execution of which has not been stayed, has served on the debtor in Australia or, by leave of the Court, elsewhere, a bankruptcy notice under this Act and the debtor does not:

                              (i)  where the notice was served in Australia–within the time fixed for compliance with the notice; or

                             (ii)  where the notice was served elsewhere–within the time specified by the order giving leave to effect the service;

                            comply with the requirements of the notice or satisfy the Court that he or she has a counter-claim, set-off or cross demand equal to or exceeding the amount of the judgment debt or sum payable under the final order, as the case may be, being a counter-claim, set-off or cross demand that he or she could not have set up in the action or proceeding in which the judgment or order was obtained

Source: http://classic.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s40.html

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Need finance for your business – big or small? Even if you need funds for a tax debt or other problem – we may be able to assist – click here for next steps.

More info on Bankruptcy?

What is a Bankruptcy Notices under the Bankruptcy Act 1966? The Act defines Bankruptcy Notices as follows:

BANKRUPTCY ACT 1966 – SECT 41

Bankruptcy notices

(1)  An Official Receiver may issue a bankruptcy notice on the application of a creditor who has obtained against a debtor:

                     (a)  a final judgment or final order that:

                              (i)  is of the kind described in paragraph 40(1)(g); and

                             (ii)  is for an amount of at least the statutory minimum; or

                     (b)  2 or more final judgments or final orders that:

                              (i)  are of the kind described in paragraph 40(1)(g); and

                             (ii)  taken together are for an amount of at least the statutory minimum

Do you have a problem with a Bankruptcy Notices? Have you been served a Bankruptcy Notices? Does someone owe you money and you’d like to issue a Bankruptcy Notices?

Any questions about Bankruptcy Notices? Live chat with us in the bottom right corner or call us on 1300-327123 till late, or alternatively complete the form below and we’ll reply to you promptly.

Watch our video tutorial, live chat with us in the bottom right corner or call us on 1300-327123 till late.

We offer a free first appointment to anyone who is in financial trouble and can assist and advise on any Bankruptcy Notices or a related matter. To book your free appointment – click here.

Mark J. Smith
Mark J. Smith

To learn more about Mark Smith, his training and expertise – click here to go to his profile page

Connect to Mark on LinkedIn.

Follow Mark on Twitter: https://twitter.com/mrmarkjsmith

Acts of Bankruptcy – s41 Bankruptcy Notices

bankruptcy

How does a Bankruptcy Notices under the Bankruptcy Act 1966 work?

BANKRUPTCY ACT 1966 – SECT 41

Bankruptcy notices

(1)  An Official Receiver may issue a bankruptcy notice on the application of a creditor who has obtained against a debtor:

                     (a)  a final judgment or final order that:

                              (i)  is of the kind described in paragraph 40(1)(g); and

                             (ii)  is for an amount of at least the statutory minimum; or

                     (b)  2 or more final judgments or final orders that:

                              (i)  are of the kind described in paragraph 40(1)(g); and

                             (ii)  taken together are for an amount of at least the statutory minimum

Need finance?

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More info on Bankruptcy?

BANKRUPTCY ACT 1966 – SECT 40

Acts of bankruptcy

(1)  A debtor commits an act of bankruptcy in each of the following cases: ….

… (g)  if a creditor who has obtained against the debtor a final judgment or final order, being a judgment or order the execution of which has not been stayed, has served on the debtor in Australia or, by leave of the Court, elsewhere, a bankruptcy notice under this Act and the debtor does not:

                              (i)  where the notice was served in Australia–within the time fixed for compliance with the notice; or

                             (ii)  where the notice was served elsewhere–within the time specified by the order giving leave to effect the service;

                            comply with the requirements of the notice or satisfy the Court that he or she has a counter-claim, set-off or cross demand equal to or exceeding the amount of the judgment debt or sum payable under the final order, as the case may be, being a counter-claim, set-off or cross demand that he or she could not have set up in the action or proceeding in which the judgment or order was obtained

Source: http://classic.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s40.html

Do you have a problem with a Bankruptcy Notices? Have you been served a Bankruptcy Notices? Does someone owe you money and you’d like to issue a Bankruptcy Notices?

Any questions about Bankruptcy Notices? Live chat with us in the bottom right corner or call us on 1300-327123 till late, or alternatively complete the form below and we’ll reply to you promptly.

Watch our video tutorial, live chat with us in the bottom right corner or call us on 1300-327123 till late.

We offer a free first appointment to anyone who is in financial trouble and can assist and advise on any Bankruptcy Notices or a related matter. To book your free appointment – click here.

Mark J. Smith
Mark J. Smith

To learn more about Mark Smith, his training and expertise – click here to go to his profile page

Connect to Mark on LinkedIn.

Follow Mark on Twitter: https://twitter.com/mrmarkjsmith