Frequently Asked Questions

What is insolvency?

Insolvency is the inability of an individual person or a corporation to pay their debts as and when they fall due. The insolvency of individuals is formally dealt with under the terms of the Bankruptcy Act, 1966. The insolvency of companies are dealt with under the terms of the Corporations Act, 2001.

What is the difference between Bankruptcy and a Personal Insolvency Agreement?

Bankruptcy can be initiated personally by the debtor preparing and lodging a Debtor’s Petition with ITSA, or ‘involuntarily’ by the Court, upon the petition of a creditor. Whereas, a Personal Insolvency Agreement is an arrangement, administered by a Controlling Trustee, where the debtor offers creditors an alternative amount in satisfaction of their debts to creditors and voluntarily contributes repayments over an agreed period of time in order to satisfy these agreed amounts.

What is ITSA?

ITSA is the Insolvency Trustee Service Australia. ITSA are a Government agency responsible for the administration and regulation of the personal insolvency system in Australia. More information on ITSA can be sourced at http://www.itsa.gov.au

What is GEERS?

GEERS is the General Employee Entitlements and Redundancy Scheme, formulated to assist people who have lost their jobs as a result of a Liquidator being appointed to their employer, and who are owed certain employee entitlements. If you would like more information on GEERS you can contact them on 1300 135 040 or send an email to: GEERS@dewr.gov.au.