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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 AFSA?

AFSA is the Australian Financial Security Authority which is a Government agency responsible for the administration and regulation of the personal insolvency system in Australia.

Prior to 15 August 2013, AFSA was known as ITSA (the Insolvency & Trustee Service Australia).

More information on AFSA can be sourced at http://www.afsa.gov.au

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 AFSA, or ‘involuntarily’ by the Court, upon the petition of a creditor.

A Personal Insolvency Agreement is an alternative to bankruptcy and is where a person enters into an agreement with their creditors without being made bankrupt.

What is FEG?

FEG is the Fair Entitlements Guarantee, a scheme developed by the Australian Government to assist individuals owed employee entitlements following the insolvency of their employer.

Prior to 5 December 2012, FEG was known as GEERS (the General Employee Entitlements and Redundancy Scheme, or GEERS).

Further information regarding the criteria required under the FEG legislation and the Fair Entitlements Guarantee Act 2012 can be found at www.comlaw.gov.au/Details/C2012A00159