Bankruptcy: Section 73 Proposals

 

During the course of bankruptcy, a bankrupt may be in a position to make a proposal to creditors to satisfy their debts and consequently end bankruptcy under Section 73 of the Bankruptcy Act.

If accepted, the creditors would expect to receive a greater distribution than they would receive under the continued bankruptcy and the bankrupt will be released from the restrictions of bankruptcy.

Bankrupts may make such a proposal by sending a written proposal to the Trustee in bankruptcy requiring that a meeting of creditors be called to consider the proposal.

The Trustee will conduct any necessary investigations into the benefits of the proposal, issue a report and call a meeting for the creditors to vote on the acceptance or rejection of the proposal.

If the proposal is accepted, the bankruptcy will be annulled at the time of acceptance.

 

Contact Us

 

If you are bankrupt and considering making a section 73 proposal, contact us at Bambrick Legal today. We offer a free, no-obligation 15-min consultation for all enquiries.

You can also read more about our Insolvency services here.

Related Blog – Bankruptcy: Part X Personal Insolvency Arrangements

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