Declaring Bankruptcy in Australia – Advice & Guidance
When you’ve exhausted all other financial avenues, it may be necessary to declare bankruptcy. Although declaring bankruptcy may seem like a simple solution, it really should be a last resort as it will impact the rest of your life. Our team at Life After Debt ® will provide you with bankruptcy advice in Perth, helping you explore every financial solution available.
If you are declared bankrupt, a trustee will be appointed to administer the bankruptcy. During the bankruptcy period you have a number of responsibilities to the bankruptcy trustee and are referred to as an undischarged bankrupt. The bankruptcy period usually lasts three years, but can be extended up to 5-8 years if the trustee lodges a poor conduct complaint against you. If you’re considering bankruptcy in Perth or Australia, you may want to understand your rights and responsibilities, some of which are outlined below.
The bankruptcy trustee is responsible for:
- Securing and selling your assets, including any assets acquired during the bankruptcy.
- Determining and collecting the appropriate amount of post-bankruptcy income contributions from you.
- Examining your prior conduct and investigating whether any financial recoveries are available from your family or other parties, or whether offences have been committed under the Act.
- Reporting and meeting with creditors.
- Distributing money to creditors gathered by the bankruptcy trustee.
Restrictions During Bankruptcy
There are also significant restrictions placed upon you, including:
- A requirement to contribute part of your income during bankruptcy (above a set threshold) to the trustee.
- The net value of any motor vehicle you own cannot exceed a set amount ($7,700 at March 2017).
- Cannot apply for credit above $5,574.00 without disclosing you are an undischarged bankrupt.
- You cannot manage a company, including acting as a director, without the consent of the Court.
- Must attend meetings with the trustee and creditors when asked.
- Required to immediately advise the trustee if you change residential address.
- Surrender your passport to the trustee and obtain their consent (which may be withheld) to travel overseas.
Get Advice Before Making a Decision
Before making any decisions regarding your financial situation, we recommend seeking counsel from a reputable institution. AFSA (Australian Financial Security Authority) is the government body responsible for the processing and regulation of the Insolvency Sector. Their website is a comprehensive resource for those considering Bankruptcy.
At Life After Debt ®, we offer general bankruptcy advice in Perth for those who require it. To find a way to get out of debt without going bankrupt, contact us for a free consultation.
To find a way to get out of debt without going into bankruptcy, contact us now for a free consultation.