Bankruptcy

Bankruptcy and Voluntary Bankruptcy in Australia

Historically bankruptcy has been a tool of last resort when people face overwhelming financial problems that can’t be solved with any other approach or solution. And while your situation may feel out of control, you’d be surprised to learn that there are good solutions for difficult debt problems without going bankrupt.

The limited information we can give you here on these pages will give you an overview of bankruptcy but before you jump into going bankrupt it would be prudent to discuss your situation confidentially and for free with an experienced insolvency expert. That is why we have provided this online free consultation request form for you to complete so we can have an expert contact you to discuss your specific situation and plan a way to help you get out of debt.

What Every Australian Needs to Know About Bankruptcy

• There are two ways a person can be made bankrupt: voluntarily or at the request of a creditor.
• In order to go bankrupt you will need to complete a debtor’s petition, statement of your affairs, and an acknowledgement that you have read and received the prescribed information.
• While there is no filing fee to go bankrupt, a trustee is entitled to be compensated for their work from the assets of your estate.
• Your bankruptcy will last for up to three years but may be extended longer if you have engaged in bad acts.
• Bankruptcy can stop creditors in their tracks but cannot get rid of fines or penalties imposed by the court, child maintenance orders, HECS obligations and some Social Security overpayments, debts you fraudulently obtained, secured debts may be excluded, council rates and water rates must still be paid, and finally, if someone co-signed or guaranteed the debt for you and you go bankrupt, your creditors will go after them for repayment.
• Being bankrupt may impact your job, especially if you are a company director or on the police force. A Bankrupt can also not hold licenses for the sale of liquor, a tax agents license, real estate (principal) license, builders license, finance brokering license, and some security clearances may be off limits. If you have a concern about how bankruptcy might impact your job, complete the online request for a free confidential consultation.
• Even in bankruptcy you may be required to make monthly payments from your disposable income. Going bankrupt does not mean that you automatically get to walk away from your debts. There are consequences.
• During the period of time that you are an undischarged bankrupt you will need to secure permission to leave Australia. You should expect to request permission, well in advance of your travel dates, and provide detailed information about how you will pay for the trip, etc. (If you enter into a Debt Agreement or a Personal Insolvency Agreement, you are free to travel at will.)