Debt & Bankruptcy Lawyers — All States & Territories
Debt & Bankruptcy Lawyers — Real Options. Real Relief.
Unmanageable debt — whether from personal loans, credit cards, ATO debts, or business liabilities — can be resolved. Personal bankruptcy, debt agreements (Part IX), and debt settlement each offer different levels of protection, different eligibility criteria, and different consequences for your credit record and assets. A debt and bankruptcy lawyer advises on which option fits your situation — and manages the process to protect what matters most. Get connected with a debt lawyer for a free consultation today.
⚠ ATO statutory demands must be responded to within 21 days — after which the ATO can apply to wind up your company. Bankruptcy petitions filed by creditors give you limited time to respond. Judgment debts can be enforced immediately by garnishee order or sheriff's levy. Get urgent advice before the deadline passes.
Debt & Bankruptcy Practice Areas
From personal bankruptcy to corporate winding up — every debt situation covered.
Select the debt matter that matches your situation. Each page explains your legal options, the relevant legislation, and what a debt lawyer does to protect your assets and manage your creditors.
Personal Bankruptcy
Voluntary bankruptcy under Part IV of the Bankruptcy Act 1966 provides immediate relief from unsecured debts — an automatic stay on enforcement action, protection of necessary assets (tools of trade, household furniture, a vehicle up to threshold value), and discharge after 3 years. A bankruptcy lawyer advises on whether bankruptcy is appropriate, what assets are protected and which vest in the trustee, and how to navigate the bankruptcy period to achieve the best outcome.
Get personal bankruptcy help →Debt Agreements (Part IX)
A Part IX debt agreement under the Bankruptcy Act 1966 is a legally binding arrangement with creditors — paying a proportion of the debt over time (typically 3–5 years) without going bankrupt. Part IX agreements are available to debtors who meet income and asset thresholds, and provide a formal alternative to bankruptcy that protects employment in regulated industries. A debt lawyer advises on eligibility and manages the Part IX proposal and creditor vote.
Get debt agreement help →Debt Settlement & Negotiation
Where a debtor has assets or income but is struggling with creditor pressure, a negotiated debt settlement — paying creditors a reduced lump sum or agreeing a revised payment plan — can resolve the debt without bankruptcy or a formal insolvency process. A debt lawyer negotiates directly with creditors, secures settlement agreements, and manages the documentation to ensure the settlement is binding and effective.
Get debt settlement help →Garnishee Orders & Judgment Enforcement
A creditor who has obtained a judgment debt can enforce it immediately — by garnishee order over the debtor's wages or bank account, by writ of levy over personal property, or by charging order over real property. A debt lawyer advises debtors facing enforcement action on the options for setting aside the judgment, applying to the court for a stay of execution, or negotiating a payment arrangement with the judgment creditor.
Get garnishee order help →Creditor Pressure & Multiple Debts
Multiple creditors — banks, credit card providers, the ATO, suppliers, and landlords — can escalate debt collection simultaneously through letters of demand, legal proceedings, and enforcement action. A debt lawyer coordinates the response to multiple creditors, advises on which debts are priority and which can be negotiated, and manages the process to prevent any single creditor from obtaining a disproportionate advantage through enforcement.
Get creditor pressure help →Winding Up Application Defence
A creditor who is owed more than $4,000 (the statutory minimum) can apply to the Supreme Court to wind up a company — effectively forcing it into liquidation. A company that receives a winding up application has a limited time to respond. A debt lawyer advises on the grounds for defending a winding up application — including disputing the debt, paying the debt, and demonstrating that the company is solvent — and files the necessary court documents urgently.
Get winding up defence help →ATO Debt & Statutory Demands
ATO debts — including income tax, GST, PAYG withholding, and superannuation guarantee charge — are among the most aggressively collected debts in Australia. The ATO can issue statutory demands (giving 21 days to pay or respond), director penalty notices (making directors personally liable for company tax debts), and wind-up applications. A debt lawyer advises on responding to ATO demands, challenging director penalty notices, and negotiating payment arrangements with the ATO.
Get ATO debt help →Bankruptcy Trustee & Creditor Rights
When a debtor becomes bankrupt, a registered bankruptcy trustee takes control of their divisible assets — investigating the bankrupt's financial affairs, realising assets for the benefit of creditors, and distributing dividends to creditors in priority order. A debt lawyer advises creditors on proving debts in a bankruptcy, trustees on their powers and obligations, and bankrupts on their obligations during the bankruptcy period and on applying for an early discharge.
Get trustee & creditor help →Why a Debt Lawyer Makes a Difference
Creditors have legal teams — you need representation too.
Debt law is not just about the amount owed — it is about the strategy, the timing, and the protection of assets that matter most to you. A debt lawyer who knows the insolvency options and the creditor enforcement process gives you back control.
Bankruptcy vs debt agreement — the choice matters enormously
Bankruptcy and a Part IX debt agreement have very different consequences — for assets, for employment, for travel, and for credit history. Bankruptcy vests divisible assets in the trustee immediately — but protects necessary assets (tools of trade up to $4,200, a vehicle up to $9,200, household furniture). A Part IX agreement preserves all assets but requires regular payments to creditors for 3–5 years. Both remain on the National Personal Insolvency Index (NPII) permanently and on the credit file for 5 years from the date of discharge or agreement completion. A debt lawyer advises on which option best fits the debtor's specific circumstances — assets, income, employment obligations, and the nature of the debts.
The family home — what happens in bankruptcy
A bankrupt's interest in the family home vests in the bankruptcy trustee — who can sell the home to pay creditors. However, the trustee has a 3-year window in which to deal with the property (s 134 Bankruptcy Act 1966). If the trustee does not sell or commence proceedings within 3 years, the bankrupt's interest in the property re-vests in the former bankrupt. A debt lawyer advises on the options for protecting the family home in a bankruptcy scenario — including the spouse's interest in the property, pre-bankruptcy planning steps, and negotiating with the trustee to "buy back" the bankrupt's interest at a value agreed with the trustee.
Director penalty notices — personal liability for company tax debts
Under the Tax Administration Act 1953 (Cth), the ATO can issue a director penalty notice (DPN) making a director personally liable for the company's unpaid PAYG withholding, GST, and superannuation guarantee charge. There are two types of DPNs — a "lockdown" DPN (where the liability is immediate and the director's only option is to pay) and a "non-lockdown" DPN (where the director can avoid the penalty by placing the company into voluntary administration or liquidation within 21 days). A debt lawyer advises directors urgently on receipt of a DPN and takes immediate action to avoid or minimise the personal liability.
Voidable transactions — what the trustee can claw back
A bankruptcy trustee has the power to investigate transactions made by the bankrupt before bankruptcy and to set aside transactions that are deemed "voidable" — including transfers to related parties at undervalue (within 4 years of bankruptcy for related parties, and 2 years for unrelated parties under s 120 Bankruptcy Act), and payments to preferred creditors (within 6 months under s 122). A debt lawyer advises debtors on the voidable transaction rules before entering bankruptcy — so that pre-bankruptcy steps can be taken with a full understanding of what the trustee can (and cannot) claw back.
Statutory demands — the company's 21 days
A creditor who serves a statutory demand on a company under s 459E of the Corporations Act 2001 creates a presumption of insolvency if the company fails to comply or apply to set aside the demand within 21 days. The company has 21 days to pay the debt, to negotiate a settlement, or to apply to the court to set aside the demand. Failure to respond within 21 days entitles the creditor to commence winding up proceedings based on the presumption of insolvency. A debt lawyer advises urgently on receipt of a statutory demand — because the 21-day period is strict and cannot be extended by agreement of the parties.
Sequestration orders — creditor-initiated bankruptcy
A creditor owed $10,000 or more can apply to the Federal Circuit and Family Court of Australia for a sequestration order — a court order declaring the debtor bankrupt. The creditor must establish that the debtor has committed an "act of bankruptcy" within the previous 6 months — typically, failing to comply with a bankruptcy notice served by the creditor. A debt lawyer advises debtors who receive a bankruptcy notice on the steps required to avoid a sequestration order — including paying the debt, disputing the debt in court, or applying to have the bankruptcy notice set aside.
How It Works
One request. A free debt & bankruptcy consultation.
Tell us the total debt, the creditors involved, whether you own property, your current income, and whether any enforcement action has commenced. A debt lawyer will advise on the options available.
Submit Your RequestDescribe the debt situation
Total debt, the main creditors (ATO, banks, suppliers), whether you own property, current income and employment, and any enforcement action already commenced (garnishee orders, statutory demands, bankruptcy notices).
Matched to a debt lawyer
Matched to a debt and bankruptcy lawyer with experience in the specific type of debt matter — personal insolvency, corporate insolvency, ATO enforcement, or creditor negotiation.
Free consultation
A debt lawyer contacts you for a free consultation — advising on the available options, the consequences of each, and the recommended strategy for your specific debt situation.
About Debt & Bankruptcy Law in Australia
Federal legislation — the Bankruptcy Act 1966 and Corporations Act 2001.
Personal insolvency in Australia is governed by the Bankruptcy Act 1966 (Cth) — federal legislation administered by the Australian Financial Security Authority (AFSA). The Act provides three formal insolvency options for individuals: voluntary bankruptcy (Part IV), debt agreements (Part IX), and personal insolvency agreements (Part X). Each option has different eligibility criteria, asset consequences, and credit file impacts. A debt lawyer advises on which option best fits the debtor's circumstances.
Corporate insolvency — the insolvency of companies — is governed by the Corporations Act 2001 (Cth). The Act provides for voluntary administration (Part 5.3A), deeds of company arrangement, winding up (liquidation), and the small business restructuring process (Part 5.3B). The Australian Securities and Investments Commission (ASIC) regulates corporate insolvency practitioners — registered liquidators and voluntary administrators.
The National Personal Insolvency Index (NPII) is a permanent public record of all personal insolvency administrations in Australia — bankruptcies, debt agreements, and personal insolvency agreements. Information on the NPII remains permanently searchable. In addition, a bankruptcy or debt agreement is recorded on the debtor's credit file for 5 years from the date of discharge or completion — affecting the ability to obtain credit during that period.
For debtors who do not meet the thresholds for a Part IX debt agreement or who want to avoid formal insolvency entirely, informal debt settlement and creditor negotiation are options. An informal arrangement does not appear on the NPII and does not require a majority of creditors to approve — but it is only binding on creditors who agree. A debt lawyer advises on whether an informal arrangement is achievable given the nature and mix of the debtor's creditors.