Bankruptcy is a formal procedure under the Bankruptcy Act for people who cannot pay their debts. Your assets will be sold by your Bankruptcy Trustee, unless they are protected assets under the Bankruptcy Act.
Bankruptcy will place many restrictions on your life including the right to freely travel overseas.
You will need to keep in regular contact with your Bankruptcy Trustee and your income will be formally assessed for compulsory contributions for each year of your bankruptcy. Bankruptcy usually lasts for 3 years, however, in some cases your bankruptcy term can be extended for up to 5 years or in extreme cases 8 years.
Frequently Asked Questions
- Assets – what assets can I keep?
- Assets – can I buy an asset whilst I am bankrupt?
- Bankruptcy – what is it & how long is it?
- Bankruptcy – when should I declare bankruptcy?
- Bankruptcy – can the time period be extended?
- Business – can I trade a business as a bankrupt?
- Bank account – will my Bankruptcy Trustee close my bank account?
- Credit file – will my credit file be affected?
- Credit – can I incur credit after bankruptcy?
- Creditor calls – can creditors continue to call me after bankruptcy?
- Debts – what happens to debts incurred after bankruptcy?
- Debts – will bankruptcy clear all debts incurred before bankruptcy?
- Employment – will it affect my employment?
- Examinations – can I be examined in bankruptcy?
- House – will I lose my house?
- Income – will I lose any of my income in bankruptcy?
- Investigations – will any investigations into my financial affairs be made?
- Offences – can I be liable for any offences in bankruptcy?
- Tax – do I still need to lodge tax returns?
- Transactions prior to bankruptcy – can any transaction be clawed back?
- Travel – can I travel overseas?