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

How does aBankruptcy 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

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Whatis aBankruptcy Notices under the Bankruptcy Act 1966?

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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