Category: faq1

Are there any alternatives to avoid bankruptcy?

People who find themselves in serious financial difficulty generally think of bankruptcy as their only option, and one to be avoided at all costs. This can create an unnecessary amount of fear and stress for those who are already under a lot of pressure, because for some people, bankruptcy is often not as bad as it is made out to

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Are there offences under bankruptcy?

Bankruptcy offences. disposing of property before bankruptcy with intent to defeat your creditors; failure to disclose assets; leaving Australia without your Bankruptcy Trustee’s permission; obtaining of credit when you know you cannot repay it; incurring debts during bankruptcy over $6,893 without disclosing that you are bankrupt; operating a business under an assumed name, without advising your bankruptcy; and leaving Australia

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Bankruptcy – What is it?

Bankruptcy is a government legislated process that is designed to create a fair outcome for all involved when someone is unable to honour their debts. For the individual, it provides relief from the stresses of unmanageable debt and legal protection from their creditors. It also helps the creditors, in that it creates a system by which any recoverable funds are

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Can I be forced into bankruptcy if I don’t pay my bills?

Many people are threatened with bankruptcy by their creditors when they are unable to make their payments, and sometimes it is hard to know whether it is just a threat, or a potential reality. The safe answer is yes, a creditor can force you into bankruptcy – but there are certain conditions and processes to be met first. A creditor

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Can I be made bankrupt by a court order?

A creditor can force you into bankruptcy by approaching the court for a bankruptcy order (or sequestration order) to be issued.  This type of bankruptcy is known as a Creditor’s Petition. The first step toward making you bankrupt is to issue you with a Bankruptcy Notice, which usually allows you 21 days to respond. If you do not respond satisfactorily

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Can I buy any assets whilst I am bankrupt?

The purpose of bankruptcy is to ensure that any funds that can be put towards your debts are distributed fairly to your creditors. If you do not have any funds, they will not get anything – if you do, though, it is your Bankruptcy Trustee’s job to ensure that they are realised and spread out accordingly. Funds for your bankrupt

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Can I declare bankruptcy from overseas?

It is relatively common for people to find themselves with debts in another country that they are unable to pay. We have had numerous calls from people who are overseas asking if they can declare themselves bankrupt in Australia. To be able to declare bankruptcy in Australia: your debts must be Australian ones; you must be insolvent, ie. unable to

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Can I incur credit as a bankrupt?

Another hurdle to gaining more credit, and one that is extremely important to know, is that you are actually restricted from applying for credit over a certain amount. If you do apply for credit over the threshold amount, which is currently $6,893 (as at March 2024), you must declare that you are a Bankrupt person. If you do not disclose

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Can I keep any assets if I go bankrupt?

You are allowed to keep, however, a vehicle that is worth up to the protected threshold, which is currently set at $9,100. If your vehicle is worth more than this, the Trustee would need to sell it for what it is worth, but they would then return the protected amount of $9,100 to you for the purchase of a lesser

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