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.


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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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