Bankruptcy

Bankruptcy is considered to be a “last resort” for those with debt problems. If you are experiencing genuine financial difficulties then there are alternatives to bankruptcy.

Facts
Bankruptcy results in serious consequences and restrictions being imposed on your life. A bankruptcy usually lasts for 3 years however if you fail to co-operate with your trustee this can be extended to a maximum of 8 years.

Under bankruptcy you may still have to pay back some debt such as child support, maintenance and debts incurred by fraud. You can choose to go bankrupt for any amount, however your creditors can force you into bankruptcy for as little as $2,000.

Consequences of becoming bankrupt
Bankruptcy restricts you from leaving Australia without written permission from your trustee even if it is for a holiday. Your name will be placed on a commercial credit reference for 7 years even if your bankruptcy has been discharged. This means that when you go to apply for credit all of your credit providers may be informed that you are or have previously been bankrupt.

Your non-exempt assets (including your house, shares, land and investments) belong to your trustee and can be sold at any time without your permission. You are only allowed to keep a limited amount of belongings and any non-exempt assets you receive during your bankruptcy become the property of the trustee.

Your job opportunities may be affected, especially with jobs handling money or where a license is required (e.g. security industry, real estate, licensed builder etc). You cannot be the director of a company or hold certain public positions without permission.

If you are in business and trade under a business name other then your own you must tell everyone that you are an undischarged bankrupt. You will also loose the right to take and/or continue most legal actions.

You must advise your trustee of any change in address, you will not be able to travel overseas without written permission from your trustee. You may also be asked to give up your passport to your trustee.

Before considering bankruptcy it is important that you fully understand what you’re getting yourself into. It is a good idea to speak to your financial counselor or advisor before deciding to go bankrupt. However, there are alternatives to bankruptcy.

If you would like to find out how we can help you avoid or recover from bankruptcy please feel free to contact us.

Avoiding bankruptcy
It is posible to avoid bankruptcy and recover from debt problems. Contact us to find out how today!

Find out how we can help you avoid or recover from bankruptcy.