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Elements and Performance Criteria

1. Monitor the status of the insolvency and analyse potential risk
   • Factors that may contribute to a possible personal insolvency situation and the risk factors to the creditor organisation are assessed
   • Impact of actions that may be taken by a trustee or other third party is assessed before determining action
2. Determine appropriate action
   • Personal insolvency actions are evaluated in accordance with statutory rights and obligations
   • 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
   • Causes for personal defaults are evaluated and procedures reviewed as a mechanism to prevent recurrence of loss, contributing factors and exposure
   • Outcome of review is implemented as required

Required Skills

Required skills

welldeveloped communication skills to determine and confirm personal insolvency situations and to clarify this using questioning and active listening as required liaise with others share information listen and understand use language and concepts appropriate to cultural differences numeracy and IT skills to perform personal insolvency related calculations use relevant software spreadsheets and databases access webbased information services research and analysis for accessing interpreting and managing personal information to determine insolvency risk welldeveloped interpersonal skills to deal effectively with personalinsolvency stakeholders judgement skills for making personal insolvency risk determinations organisational skills including the ability to plan and sequence work

Required knowledge

current knowledge of relevant legislative requirements developments in the credit management sector and company policy full range of credit options within legal requirements relevant industry indicators

Evidence Required

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

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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.

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