6-8 William Street, Nambour, Sunshine Coast

Bankruptcy Lawyers

Bankruptcy Lawyers Sunshine Coast

If a person is unable to pay their debts owed to others and has no capacity to meet those debts into the future, they may become bankrupt and be in need of the services of a bankruptcy solicitor.

We’ll guide you through

Being a bankrupt means that all of your financial affairs are handled by a trustee for a period of 3 years from the date that you are declared bankrupt. However, you should remember that the period of a bankruptcy can be extended in certain circumstances.

A record of a person’s bankruptcy will be kept permanently on a database known as the National Personal Insolvency Index (NPII) and will also be placed on their credit record for a period of 5 years.

There are 2 ways in which a person can be declared bankrupt;

  • A person can voluntarily declare themselves bankrupt if they are unable to pay a debt that they may owe, whatever the value;
  • A person can involuntarily be declared bankrupt by a court, following an application by a person or company to whom they owe a debt of at least $10,000 to, known as a creditor.

Bankruptcy will have serious and detrimental consequences to any person, but perhaps most detrimental on professionals and tradesman who require certain certifications, qualifications or registrations before they are allowed to work.

During the period of bankruptcy, a bankrupt is also prohibited from being a director or other influential officer of a company, without the permission of a court.

When declared bankrupt, a person’s assets become controlled by their trustee, whose initial role is to sell those assets and collect as much money as possible for distribution to all of their creditors. They are likely to lose all cash, real estate, cars, artefacts, tools, inheritance monies and other expensive personal effects (so long as they are of a certain value).

A bankrupt will generally not lose their ordinarily household effects and cars, tools and belongings that are of little value. They will also be able to keep any compensation payouts they may have results for personal injuries.

Protecting consumers

What we ordinarily see in bankruptcy matters is that a creditor will not recover the full value of their debt, but only a portion of their debt. This is because a trustee must first satisfy any secured creditors (those who hold a security interest in property) before paying all of their unsecured creditors the balance, in equal percentage to the debt owed. It is unfortunately often the case that a creditor will receive nothing once the bankrupt’s estate is finalised.

If you are of the view that you cannot pay your debts and want to declare bankruptcy yourself, you should contact the Australian Financial Security Authority (AFSA) who will be able to assist you with that process.

If you are owed money by someone and you want to force that person into bankruptcy then our bankruptcy solicitors on the Sunshine Coast can assist in successfully following the very strict process that needs to be adhered to having a person declared bankrupt.

Meet our banckruptcy law team

Butler McDermott is a household name in the Sunshine Coast because we place our clients at the heart of everything we do.
If you are looking for a bankruptcy solicitor to guide you smoothly through the transfer of your property, contact us today to set up an appointment.

Simone Faunt


Peter Boyce


Peter has been practising as a Nambour Solicitor since 1977 and joined Butler McDermott Lawyers the same year.

With over 40 years practicing as a Sunshine Coast lawyer, Peter has extensive knowledge of various facets of law.

He has practised in all areas of litigation and has special interests in:

  • Criminal law
  • Civil and Commercial litigation
  • Retirement Village matters
  • Sports law
  • Resumption of land and compensation claims


Peter has specialised knowledge of and experience with resumption matters as a result of the Traveston Dam project, road corridors, Main Roads and water pipeline. He is renowned for his professional approach and is an experienced and determined advocate.

Brent King


Brent works as a litigation lawyer, providing litigation legal advice in relation to both civil and criminal law matters, including:
  • Defamation Claims
  • Contract and Debt Disputes
  • Building and Construction Disputes
  • Planning Matters
  • Criminal Law and Traffic Legal Matters
Having grown up on the Sunshine Coast and joining Butler McDermott after the completion of his studies, Brent appreciates the needs of our clients, and brings a particularly commercial approach to litigation. Brent is a member of the Queensland Law Society and the Sunshine Coast Law Association, and has litigated a wide variety of matters in the Magistrates, District and Supreme Courts.

Al Upton


After arriving at Butler McDermott Lawyers in 2016, Al quickly progressed to running our Wills and Estates section and has successfully litigated disputes in the Supreme and District Courts of Queensland in the early stages of his career.

In the years that followed Al has now moved to assist our clients with commercial and property matters having achieved positive outcomes in that area as well as general litigation. Al’s experience has him uniquely placed to provide quality advice in the areas of property, commercial, wills and estates and general litigation.

Al is involved in giving back to the community, sitting on the board for the Daniel Morcombe Foundation and Sundale Community Foundation. He otherwise became a director of Butler McDermott Lawyers in November 2021.