Businesses or companies cannot be made bankrupt. Only people can be made bankrupt, including persons under 18 years and debtors who do not have Australian citizenship.
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.
A person under the age of 18 years can be made bankrupt (s 7(1A)), but not if the debts which are the trigger for the bankruptcy are unenforceable due to the person’s age (see “Young people” in How contract law works).
Debtors who do not have Australian citizenship or residency 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, 43).