A Bill to reduce the period of bankruptcy from 3 years to 1 year was introduced by the government in October 2017. It hasn’t become law as yet, but if the bill is passed by parliament bankrupts will be discharged 1 year from the date of filing their statement of affairs.

What happens after I am discharged?
You don’t need to disclose your status as a bankrupt when applying for credit;
You don’t need to seek permission to travel overseas; and
You can be appointed as a company director.

How will this affect bankruptcies on foot?
When this new law is passed, bankruptcies on foot will be discharged if 1 year has expired since the bankrupt filed their statement of affairs.

However, some things remain unchanged. A Trustee (the person who supervises the bankruptcy) can still object to a bankrupt’s discharge and can extend the term of bankruptcy to 5 or 8 years (depending on the nature of the breach). The Trustee will still have the ability to lodge an objection to discharge (prior to the first anniversary of the bankruptcy).

If you are considering filing for Bankruptcy, then it is important that you speak to a professional so that you gain a thorough understanding of it. Call our professional and friendly debt consultants at Australian Bankruptcy Services for free, expert advice on 1800 462 767.