Who can be made bankrupt?
Can companies or businesses be bankrupted?
Only people can be made bankrupt, not businesses or companies. Where a partnership or persons trading under a business name are insolvent, it is not the business that is bankrupted but the individual or individuals who run that business. The Bankruptcy Act (s 7) does not cover companies and instead the winding up of companies is regulated by the Australian Securities and Investments Commission (ASIC) under the Corporations Act.
Can minors be bankrupted?
A person younger than 18 can be made bankrupt (s 7(1A) Bankruptcy Act), but not if the debts that trigger the bankruptcy are unenforceable under contract law due to the person’s age (incapacity to contract).
Can citizens of other countries be bankrupted?
Debtors who are not Australian citizens or residents can become bankrupt if they live in Australia or have a business connection with Australia (for more details on what kind of business connection is required, see ss 7(1), 43 Bankruptcy Act).
