Legal Project Management Plan & Checklist
Purpose of this Guide: Welcome to the practitioner roadmap for managing personal bankruptcy options from the debtor perspective in Australia. Designed explicitly for debtor advisory lawyers, this guide covers initial assessment and strategic advice. Additional procedural resources can be found on the Australia Government Portal and the Federal Register of Legislation.
Jurisdiction: This guide applies to insolvency advice in Australia, governed by the Bankruptcy Act 1966 (Cth), administered by the Australian Financial Security Authority (AFSA).
Governing Legislation: Bankruptcy Act 1966 (Cth) - s 54A (Temporary Debt Protection), s 116 (divisible property), s 116(2)(d) (superannuation exemption), s 120/121/122 (voidable transactions), s 139K (income contributions), s 185C (Part IX Debt Agreements), s 188 (Part X PIAs), s 206B Corporations Act (director disqualification), s 272 (travel restrictions). Verify current guidelines on the official .
Key Thresholds (2025-26 indexed): - Part IX Debt Agreement: Unsecured debts ≤ $150,950.80, assets ≤ $301,901.60, net income ≤ $113,213.10 - Vehicle exemption: $9,600 equity - Tools of trade: $4,450 - Income contribution base: $75,475.40 (zero dependants), 50% of excess payable to trustee - Dependant income threshold: $4,512.00 Additional procedural resources can be found on the Australia Government Portal and the Federal Register of Legislation.
Process at a Glance: (1) Urgent intake and conflict check. (2) Assess immediate creditor enforcement risks (bankruptcy notices, petitions). (3) Consider s 54A Temporary Debt Protection (21-day moratorium, but is itself an act of bankruptcy). (4) Comprehensive financial audit (assets, debts, income, clawback risks). (5) Compare options: informal negotiation, Part IX Debt Agreement, Part X PIA, or voluntary bankruptcy. (6) Deliver comprehensive written advice and obtain authority to proceed. Practitioners should check the official Australia Government Portal and Federal Register of Legislation for regular procedure updates.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Personal Bankruptcy (Debtor) matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for COMMERCIAL_LAW cases, outlining the standard RESTRUCTURING process. Utilize these tracking templates to manage your legal cases efficiently.
Conduct initial onboarding, verify identity, clear conflicts, and assess urgent creditor risks.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
Formally audit all secured and unsecured liabilities and calculate divisible vs exempt assets.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.
Advise on informal options, Part IX Debt Agreements, Part X Personal Insolvency Agreements, and voluntary bankruptcy.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Part IX Debt Agreement statutory debt limit: unsecured debts must not exceed $150,950.80 (2025-26 indexed).
ATO debts (including GIC/SIC penalties) are provable debts in bankruptcy and count toward the unsecured total.
Conduct a thorough review of all filed materials to ensure compliance with court requirements, verify service obligations have been met, and prepare for the next procedural milestone.
Exempt asset thresholds (2025-26 indexed):
Divisible property under s 116 includes all property owned at the date of bankruptcy or acquired during the bankruptcy period, except specifically exempt items.
Assess the strategic considerations for interim applications, prepare supporting evidence, and draft the necessary documentation for urgent or time-sensitive relief sought.
Superannuation held in a regulated fund is exempt from divisible property under s 116(2)(d) of the Bankruptcy Act 1966.
However, contributions made with the intent to defeat creditors may be clawed back under s 121 (no time limit applies to transfers intended to defeat creditors).
Part IX Debt Agreement eligibility thresholds (2025-26 indexed):
All three thresholds must be met. A client who exceeds any single threshold is ineligible for Part IX and must consider Part X PIA or voluntary bankruptcy.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Part X Personal Insolvency Agreements (s 188) have no statutory debt, asset, or income thresholds - making them the alternative when Part IX limits are exceeded.
The proposal requires acceptance by a special resolution of creditors (majority in number and 75% in value of creditors voting).
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.