Australian Insolvency Law

Australian insolvency law governs how individuals and businesses handle situations where they cannot pay their debts. It aims to balance the interests of creditors (those owed money) and debtors by providing legal processes such as bankruptcy for individuals and liquidation or voluntary administration for companies. These processes facilitate fair debt resolution, asset distribution, and, where possible, future financial stability. The law also includes rules to prevent fraudulent practices and ensure transparency. Overall, it provides structured procedures to manage insolvency efficiently while striving to achieve equitable outcomes for all parties involved.