Essential Skills: Bankruptcy
Recoverable transactions

It’s not unusual for someone in financial distress to rearrange their financial affairs to retain effective use of their assets, or to favour their relatives or friends, in the event they are later declared bankrupt.

Fortunately, there are mechanisms within the legislation for setting aside those transactions for the benefit of the estate. Understanding the available options is a key skill for an insolvency professional.

This course provides a working knowledge of the Bankruptcy Act provisions which may allow a bankruptcy trustee to set aside a transaction and what elements the trustee will need to establish to be successful in a claim.

It covers the traditional preference recoveries and voidable undervalue transaction provisions, as well as setting aside payments into superannuation funds, trusts or transfers many years prior to bankruptcy.

Learning objectives

At the end of this course you will be able to:

• Understand the operation of sections 118, 120, 121 and 122 of the Bankruptcy Act.
• Understand what is a void transaction under sections 128B and 128C – Superannuation.
• Understand the general defences to voidable transactions
• Understand the processes for recovery of voidable transactions
• Understand the principle behind Division 4A of Part VI – Controlled entities
• Identify potentially voidable transactions under those sections.

Prerequisites

We recommend you have one year of on-the-job experience prior to attending these courses.

CPE

TBC - maximum of 2 CPE verifiable hours. 

Please see our enrolment and cancellation policy . For further information contact our education team.