We all know that with bankruptcy, there is a trail of loss which follows with it. We will help you understand if you will be released from all debts once you are discharged from bankruptcy. The debts which you will not be released from are known as non-provable debts. With non-provable debts you will need to negotiate a payment plan and continue to pay them. These debts include the following.
Debts not included in bankruptcy:
- A debt incurred after your bankruptcy commences
- Child support debts
- Court ordered fines
- Student HELP loans and HECS debts
- Debts incurred by fraud
Even if the debts will not be covered by bankruptcy, you still need to disclose them in your Statement of Affairs. A Statement of Affairs is a document that provides an overview of your personal details including, income, assets and liabilities.
When completing your Statement of Affairs, you will be asked to list all of your assets and all of your creditors. It is an offence to omit any debts from your Statement of Affairs. Any assets or debts which you do not record may be discovered during the investigations carried out by your bankruptcy trustee. Your bankruptcy trustee will be obliged under the law to reports these omissions to AFSA and you may be prosecuted.
If you accidently leave out a creditor from your Statement of Affairs, they will still be included in your bankruptcy, but it is important to report any omission to your bankruptcy trustee as soon as you become aware.
It’s always best to gain professional advice in order to understand how bankruptcy will impact your personal circumstances. If you are looking for a trusted Bankruptcy Trustee, then get in contact with us at Australian Bankruptcy Services. We are all fully licensed and qualified in order to help you file for Bankruptcy and provide expert advice. Call our bankruptcy toll-free hotline – 1800 462 767 24 hours a day 7 days a week.