Do we actually need the insolvency filing thresholds or is that overkill
There is a whole passage about what a creditor has to allege to get a court order against a debtor. Dollar figures, timing windows, the lot. Is that the level of detail that gets tested or am I about to waste an evening.
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Best answer
Ya I would say it is worth it, and it is smaller than it looks once you see why the numbers only sit on one side.
Debtor initiated is an assignment, s.49. Files with the official receiver, no court, no thresholds.
Creditor initiated is an application to the court for a bankruptcy order, s.43. Debt to the applicant creditors of at least a thousand dollars, and an act of bankruptcy within the six months preceding the filing. Both have to be alleged.
So it is two numbers attached to one of the two routes, not a passage to memorise. And a pattern giving you an act of bankruptcy from eight months ago is testing the second one.
ok the numbers only living on one side makes that much easier to hold
dont skip proposals while youre in there, thats a third route and it isnt bankruptcy at all. consumer proposal for individuals with a debt ceiling, division one for commercial with none
isnt a proposal a type of bankruptcy though?
No, and this one flips answers. A proposal is the alternative. Debtor offers less than payment in full, creditors vote, accepted and performed means the debtor is not a bankrupt and never was. A failed proposal can drop you into bankruptcy and I suspect that bridge is where people get confused.
Discharge timing is the other bit that earns marks. First time bankrupt, automatic at nine months, twenty one if there is surplus income. A pattern tells you which by bothering to mention income at all.
is surplus income a formula or a judgment call?
Its a formula that is set by directive, family size and income over a threshold. Would not memorise the figures tbh, just know it exists and doubles your timeline.
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