FAQ Bankruptcy

FAQ (bankruptcy)

What is bankruptcy?

Bankruptcy is a legal process that allows an individual to wipe most, if not all, outstanding debts they owe. Bankruptcy provides relief to someone struggling with debt.

One of the main benefits of bankruptcy is that it will stop creditors (people you owe money to) from taking further action against you. This means the calls, letters and legal action will stop.

You are able to travel overseas whilst bankrupt but you must first obtain approval from your Trustee. See our “Overseas Travel Requests” page for more information.

Yes. Superannuation is protected. The only possible claim which a trustee might have against superannuation is where there are contributions made into super to intentionally defeat creditors.

Bankruptcy filings are public. However, in most cases family and friends will not find out about your bankruptcy unless you tell them.

A direct notice is required to be issued to people you owe money.

Most, if not all, debts are wiped and form part of the bankruptcy process.

There is no effect on your income. If however you have a high income, you may be required to pay some money over to your trustee. Call us to get specific information on this.

Credit agencies will be aware of your bankruptcy and this may mean that obtaining future credit is more difficult.

In bankruptcy, the following assets are protected:

  • Superannuation
  • Motor Vehicles up to a limit
  • Tools of trade to up to a limit

Call us to get specific information on this.

Please contact us to discuss the process.

In order to file for bankruptcy you must have debts of greater than $5,000 and be unable to pay them.

It should have no effect unless your partner is jointly liable for the debt or if you hold assets jointly (e.g., a house). Call us to get specific information on this.

Yes. But there are certain limitations on this. Call us to discuss.

Yes, you can operate a bank account.

In short yes. It is important to note that you will be required to notify the provider that you are an undischarged bankrupt which will likely result in higher interest and fees being charged.

Creditors should communicate directly with the trustee’s office and any calls you receive should be forwarded to the trustee to action accordingly.

You should contact your trustee as soon as possible if you remember a forgotten debt, but they will still be included in part of the bankruptcy.

Don’t live with the financial burden any longer

Our specialised consultants can find solutions to all types of debt problems. We can help you consolidate your payments, save thousands in interest and reduce your debt. Your debt problem can be fixed!