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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Monitor status of insolvency and analyse potential risk
   • Identify factors in client accounts that may contribute to a possible personal insolvency situation and risk factors to the organisation
   • Assess impact of insolvency options that may be taken by a trustee or other third party
2. Determine appropriate action
   • Evaluate personal insolvency actions in accordance with legislative rights and obligations of both debtor and creditor
   • Complete appropriate documentation in accordance with legislative requirements and organisational policy and procedures to implement appropriate action and commence legal proceedings
3. Review circumstances which led to the personal insolvency situation
   • Evaluate causes for insolvency and review procedures to prevent recurrence of loss, contributing factors and exposure
   • Implement outcome of review, as required

Performance Evidence

Evidence of the ability to:

monitor relevant client accounts for possible personal insolvency situations or risks to the organisation

accurately complete relevant documentation relating to taking insolvency action

implement legislative requirements and organisational policy in responding to personal insolvency situations.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

identify and describe the factors that lead to personal insolvency

outline potential risks to the organisation of insolvency situations

outline potential insolvency actions that may be taken

explain key features of relevant legislative requirements relating to insolvency

explain the application of organisational policy and procedures on insolvency management

describe the full range of insolvency options within legal requirements

explain relevant industry indicators of insolvency risk.

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