Please feel free to contact us obligation free if you do not find the answer to your questions below.


Why choose bankruptcy?

If all fails, bankruptcy is a legitimate option for eliminating your unsecured debts (which limited exceptions such as child support).

You are relieved of all that stress.  You will have more money to live off.  But bankruptcy also has consequences to your assets and credit record.  In other words, bankruptcy might not be ideal but it might be the best option under the circumstances.

How long does bankruptcy run for?

Your bankruptcy period is 3 years and 1 day (unless it gets extended for a valid reason).

Can I keep my car and tools?

Yes.  However, if the car or tools have a value above a certain amount, then you have to account to your trustee for the surplus.  The amounts are the following (as at 20 March 2020):

  • Car (or motorcycle): $8,000
  • Tools: $3,800

What happens to my house?

Complicated question as there are many different scenarios.  Under some circumstances, you might be able to keep your house.  Please contact us so that we can examine your circumstances and give you a more detailed advice.

What if I inherit money or win lotto?

If you inherit money (or assets) during bankruptcy, your trustee will claim them.  Likewise if you win lotto.

What happens to my credit record?

Your credit record is affected for 5 years (3 years as bankrupt, 2 years as discharged bankrupt).  Then your credit record is supposed to be wiped clean.  If your bankruptcy is extended for a valid reason, it will take longer.  Your bankruptcy will be permanently recorded on the government register where you are assigned a bankruptcy number.

Can I borrow money during bankruptcy?

There is no law saying that you cannot borrow money or incur credit during bankruptcy.  However, there are laws about what you have to do.

If the creditor knows that you are a bankrupt and is happy to lend you money or give you credit, there is no issue.

However, many creditors will not lend or give credit to a bankrupt.  That said, many thousands go bankrupt and finds ways to manage.  For example, when renting the lease can be taken out in the name of the bankrupt’s partner.

Who will find out out about my bankruptcy?

Your existing creditors will find out about your bankruptcy because your trustee will write them.

Your trustee will not disclose your bankruptcy to your employer without a legitimate reason, for example, your failure to give your trustee records showing how much you earn.

If you wish to borrow money during bankruptcy, you only have to disclose your bankruptcy to a creditor lending you money if asked the question or borrowing above a certain amount.

How long does the process take to become bankrupt?

Once you give us all the information, we can get back to you within a day or so to sign the documents to be lodged.  However, there is often a bit of going backwards and forwards as questions about what information to provide arise.

Once the documents are lodged, your bankruptcy number is issued within 1 to 3 business days, depending on how busy is the Official Receiver’s office.

Who will be my bankruptcy trustee?

You can choose either a government trustee or a registered trustee.  Practically speaking there are not too many differences.  Just a couple of examples.  If you want permission to travel overseas, the government trustee charges a fee whereas the registered trustee cannot charge a fee.  A registered trustee could be easier to contact if you have an urgent question.

What debts do not go into bankruptcy?

Examples of unsecured debts which do not go into bankruptcy (i.e. are not provable) are child support, HEX and similar debts, debts incurred by way of fraud.  In certain states, traffic fines are also considered not provable (see also below).

What happens to my tax debt?

Tax debts are no different to other unsecured debts.  They are provable (go into your bankruptcy).

What happens to Centrelink overpayments?

Centrelink overpayments are provable (go into your bankruptcy) provided there was no fraud involved on your part.

You can phone us or fill in the form below and we will contact you what time is best for you.

Phone: 1300 855 388

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