Debt Collection Specialists | Sydney | LCollect
Debt Collection Agency | LCollect

Debt Collection News

Released every month our debt collection blog contains news, stories and tips to keep you informed.

Debt Collection and Bankruptcy Action - When to use against a consumer

Thursday, March 20, 2014 - Posted by Philip Harvey

When should I use bankruptcy action to collect a debt against an individual?

In the debt collection process, bankruptcy is but one available debt collection tool that can be pursued in the recovery of a bad debt.

This article seeks to explore in what circumstances creditors should pursue this debt collection tool.

Firstly, a debt needs to be above the minimum statutory limit amount which is $5,000. This was raised from $2,000 with the introduction of the Bankruptcy Amendment Act (2010). However, just because your debt is over this amount, does not mean you should necessarily consider Bankruptcy action.


Commencing the Bankruptcy process is expensive, so before you start your action, you should read this article in full.

Recent Posts



Copyright © LCollect 2019 | All Rights Reserved | Licensed Mercantile Agent License #409661517 | ABN 44 089 892 688 |
Australian Credit Licence #430659
HomeSite Information | Privacy Policy