The person is bankrupt, what now?

Find out useful information that applies if you are a creditor[?] in a bankruptcy[?].

After a person enters into bankruptcy, we appoint a trustee to manage the bankrupt estateThe trustee will deal with any assets and make payments to creditors if funds become available.

Creditors can also make a person bankrupt by sequestration order[?]. If this happens, creditors may choose a trustee to manage the bankruptcy.

Confirm someone who owes you money is bankrupt

If you want to confirm someone is bankrupt, ask them for the trustee's details and AFSA administration number[?]. You can then contact their trustee for details of the bankruptcy.

If the trustee is the Official Trustee[?] (AFSA), contact us now.

Confirm a date of bankruptcy

If you are unable to obtain bankruptcy details, you may wish to complete a Bankruptcy Register Search.

Your rights as a creditor

As a creditor, your rights may change. If you're listed as a creditor, the trustee will notify you. Ensure the trustee has your correct details so they can inform you of available payments. If you’re an unsecured creditor you can no longer pursue the debt. However, there are some exceptions.

For more information see: The person is bankrupt, can I pursue payment? 

Creditors have the right to request to change the trustee. They do this by voting on a resolution[?] at a meeting of creditors. You may be asked to attend and vote at these meetings.

For more information see: About meetings of creditors

Will I receive any money from the bankruptcy?

It's possible that you may receive a payment from the trustee. We call these payments dividends. This may be through the sale of assets or compulsory payments from the person who is bankrupt. From these funds, the trustee first pays fees and charges. You could be asked to approve the trustee's fees.

For more information see Approving a trustee's fees.

If funds remain, the trustee may then make payments to creditors. The trustee will let you know if you are likely to receive any dividends. Before paying you any money, the trustee will request that you lodge a proof of debt[?]. 

For more information see: How do I lodge a proof of debt?

If you think you may have missed a dividend payment, contact the trustee. You may still be able to make a claim.

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