Unit of competency Outline
Date retreived
22/07/2026 9:53 AM AWST
22/07/2026 9:53 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Respond to personal insolvency situations
Respond to personal insolvency situations
Unit of competency
National Code
FNSCRD501A
FNSCRD501A
State Code
D4088
D4088
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
080101 - Accounting
Original Release Date
29/07/2014
Nominal Hours
30
Description
This unit describes the performance outcomes, skills and knowledge required to respond to personal insolvency and its impact on creditors, and determine actions to be undertaken in an insolvency situation.This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Monitor the status of the insolvency and analyse potential risk
- 1.1. Factors that may contribute to a possible personal insolvency situation and the risk factors to the creditor organisation are assessed
- 1.2. Impact of actions that may be taken by a trustee or other third party is assessed before determining action
2. Determine appropriate action
- 2.1. Personal insolvency actions are evaluated in accordance with statutory rights and obligations
- 2.2. Appropriate claims,and proof of debtare completed in accordance with statutory and regulatory requirements
3. Review the circumstances which led to the personal insolvency situation
- 3.1. Causes for personal defaults are evaluated and procedures reviewed as a mechanism to prevent recurrence of loss, contributing factors and exposure
- 3.2. Outcome of review is implemented as required
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Insolvency situations may include:
bankruptcy:
Part IX of the Bankruptcy Act
Part X of the Bankruptcy Act
court liquidations.
Potential risk factors may include:
Australian Bureau of Statistics (ABS) information
Australian Securities and Investments Commission (ASIC) information
commercial repercussions
commercial return versus outlay cost for recovery
industry trade bureau information
Insolvency and Trustee Service Australia (ITSA) information
voidable transactions.
Statutory and legislative requirements may include:
appropriate sections of the Tax Act
Bankruptcy Act
Bills of Sale and Other Instruments Act
Cheques and Payment Orders Act
Corporations Act
Fair Trading Acts
National Consumer Credit Protection Act
Partnership Act
Personal Property Securities Act
Privacy Act
Sales of Goods Act
Small Debts Court Act or equivalent.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Insolvency situations may include:
bankruptcy:
Part IX of the Bankruptcy Act
Part X of the Bankruptcy Act
court liquidations.
Potential risk factors may include:
Australian Bureau of Statistics (ABS) information
Australian Securities and Investments Commission (ASIC) information
commercial repercussions
commercial return versus outlay cost for recovery
industry trade bureau information
Insolvency and Trustee Service Australia (ITSA) information
voidable transactions.
Statutory and legislative requirements may include:
appropriate sections of the Tax Act
Bankruptcy Act
Bills of Sale and Other Instruments Act
Cheques and Payment Orders Act
Corporations Act
Fair Trading Acts
National Consumer Credit Protection Act
Partnership Act
Personal Property Securities Act
Privacy Act
Sales of Goods Act
Small Debts Court Act or equivalent.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and apply the principles of personal insolvency to insolvency actions
accurately complete relevant documentation such as:
lodgement of claims and proof of debt
enforcement of security
enforcement of legal proceedings.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services or other organisations which offer credit facilities work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to relevant organisational policies and procedures and legislation.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
setting and reviewing business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and apply the principles of personal insolvency to insolvency actions
accurately complete relevant documentation such as:
lodgement of claims and proof of debt
enforcement of security
enforcement of legal proceedings.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services or other organisations which offer credit facilities work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to relevant organisational policies and procedures and legislation.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
setting and reviewing business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ68 | FNSCRD501 | Respond to personal insolvency situations | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D723 | FNS51511 | Diploma of Credit Management | Qualification |