Legal news
In certain circumstances creditors can take direct action against directors of companies in liquidation to recover insolvent trading losses suffered.
The process for doing so is to first try and obtain the liquidator’s consent and if they are not forthcoming, then take the steps required under subsections 588S and 588T of the Act.
If you have been declared bankrupt, or are looking to recover debt from an individual or company that has been declared bankrupt, you may be wondering what happens to debts following a declaration of bankruptcy.
This article sets out what debts are and are not recoverable from a bankrupt person, including specific debts which survive bankruptcy and remain recoverable by creditors even after the bankruptcy ends.
