How long will I be bankrupt?

A bankrupt will ordinarily be automatically discharged from bankruptcy after 3 years from filing a statement of affairs with AFSA (Section 149 of the Bankruptcy Act). This principle stands unless the Trustee in Bankruptcy files an objection to discharge in accordance with Section 149B of the Bankruptcy Act.

A Trustee in Bankruptcy may file an objection to automatic discharge and if that objection if accepted by AFSA, the bankruptcy can be extended up to 5 years in total or in extreme cases up to 8 years in total.

Therefore if you have been made bankrupt by a creditors’ petition you must a Statement of Affairs before the standard bankruptcy term of 3 years commences. If you do not file a Statement of Affairs with AFSA you could be bankrupt indefinitely.

Objection to bankruptcy discharge

A Trustee in Bankruptcy can file an objection to discharge if the bankrupt has not complied with their obligations under the Bankruptcy Act.

A bankruptcy term can be extended up to 5 years or 8 years in special circumstances depending on the level of non-compliance.

If you or your spouse are contemplating bankruptcy and you want to understand if a Trustee in Bankruptcy can object to my automatic discharge, then call us today on 1800 462 767 to discuss your options.

All calls are free, entirely confidential and if required, anonymous.