This unit may be adapted to meet the specific needs of debt recovery and credit management in all financial sectors and work environments.

ELEMENT

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

Required skills

well-developed 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 web-based information services

research and analysis for accessing, interpreting and managing personal information to determine insolvency risk

well-developed 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

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 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.

Unit sector

Credit management

This unit contains employability skills.