Debt & Insolvency FAQs

In many cases, no. Your share of any real estate equity typically transfers to your Bankruptcy Trustee. However, you may be able to ‘buy back’ the equity fro…

A Director Penalty Notice (DPN) is a powerful tool used by the ATO to make company directors personally liable for a company’s unpaid tax debts, specifically…

A Winding Up Application is a court process initiated by a creditor (usually after a Statutory Demand expires) to force a company into liquidation. If succes…

Old debts do not haunt you forever. In Queensland, most ordinary debts become statute barred after six years, which means the creditor loses the right to enforce them through the courts. The debt itself does not vanish, but the legal sword behind it goes blunt. Knowing where you stand matters whether you are the one being chased or the one chasing12. What the six-year rule covers The Limitation of Actions Act 19743 (Qld) sets a six-year limitation period for actions on simple contracts. That phrase covers most everyday debts:

A Statutory Demand is a critical legal document. You have exactly 21 days to either pay the full amount or apply to the Supreme Court to set it aside. If you…

The key difference is who is insolvent. ‘Bankruptcy’ applies to individuals (natural persons). ‘Liquidation’ (Winding Up) applies to companies. While bankrup…

Bankruptcy is governed by hard numbers rather than vague impressions, and those numbers decide who can be forced into bankruptcy, what high earners must contribute and how long restrictions last. Whether you are owed money by someone insolvent or drowning in debts yourself, understanding these thresholds helps you judge options realistically. Most figures are indexed, so always confirm current amounts with the Australian Financial Security Authority (AFSA) before acting123. Two routes into bankruptcy There are two very different doors into personal insolvency: