The consequences of bankruptcy in Australia can be serious. Therefore it is imperative that anyone considering bankruptcy fully understands the consequences and any alternative solutions that may be available to them. The best way to understand how the consequences of bankruptcy will impact you personally is to discuss your personal situation with an experienced bankruptcy advisor. We offer a toll free advice line that can be reached from anywhere within Australia on 1800 462 767.
In general though, the consequences of declaring bankruptcy will last for a period of at least 3 years. This period can be extended up to 5 or 8 years (depending on certain conditions being breached).
During your bankruptcy period the following conditions will be in place:
- Your assets – some assets may not be protected and will be sold by your Bankruptcy Trustee;
- Your income – you may need to pay compulsory income contributions to your Bankruptcy Trustee
- Borrowing money – you must inform any provider of credit that you are bankrupt if you apply for credit exceeding the statutory threshold. Failing to do so is an offence;
- Your employment prospects – being bankrupt can affect your ability to hold certain positions or licenses;
- Credit file – your credit file will have a mark on it for seven years;
- Contact details – you must advise your trustee in bankruptcy of any changes to your name or address;
- Travel – You must have written permission from your trustee in bankruptcy before travelling overseas, who can impose written conditions upon that travel. Failure to comply can result in an extension of your bankruptcy and may also be an offence.
Due to the nature of these conditions, and the serious nature of the decision to declare bankruptcy, we strongly advise that you only seek advice from a registered bankruptcy trustee. Make sure will only deal with a bankruptcy professional registered with AFSA.
If you would like to discuss how the consequences of bankruptcy may affect you call the Australian Bankruptcy Service on 1800 462 767.