Archives: FAQs

You will be entitled to keep your motor vehicle if (at the date of bankruptcy) it is worth less than $9,400. If your motor vehicle is worth more than $9,400 your Trustee in Bankruptcy would be entitled to sell the motor vehicle, however, the Trustee would need to provide you with the protected amount ($9,400) from the sale proceeds. If

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At the time of becoming bankrupt, you are entitled to keep $2,000 from the proceeds in your bank account (applying the AFSA Bankruptcy administration practice note). Therefore if you have more than that amount in your account at the date of bankruptcy, then the Trustee in Bankruptcy would be entitled to claim the excess amount. For example if you had

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You will be entitled to keep your tools of trade (at the date of bankruptcy) if they are worth less than $4,350. If your tools of trade are worth more than $4,350 (collectively) your Trustee in Bankruptcy would be entitled to sell them, however, the Trustee would need to provide you with the protected amount ($4,350) from the sale proceeds.

Bankruptcy anticipates a minimum standard of living and as such as a bankrupt you will be entitled to retain certain assets subject to statutory limits. These limits are indexed and updated by AFSA every six months. The assets which you will be able to retain (ie they will be protected under bankruptcy) include: Cash at Bank – limit of up

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A Trustee in Bankruptcy must investigate the financial affairs of a bankrupt to establish if the bankrupt entered into transactions which would be void as against the Trustee in Bankruptcy.Sections 120, 121 & 122 of the Bankruptcy Act sets out the types of transactions which may be void as against the Trustee in Bankruptcy. Undervalued Transactions Section 120 of the

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Vesting of property Any property belonging to the bankrupt at the date of bankruptcy automatically vests in the Trustee in Bankruptcy (Section 58 of the Bankruptcy Act). Trustee to take possession of property A Trustee in Bankruptcy must take control of the bankrupt’s property including any books and records of the bankrupt (Section 129 of the Bankruptcy Act).On application by

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Bankruptcy has a strong social stigma but has been terribly misunderstood for years. The problem is that the people who have actually been through a Bankruptcy are rarely the ones to talk about it. If you are considering Bankruptcy, it will help you to have a good understanding of exactly what happens, minus the scaremongering of social pressures. A Bankruptcy

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In our years of helping Australians with their personal debt problems, we have yet to come across anyone who was particularly happy about the choice to declare Bankruptcy. Aside from the actual process, which can feel a bit invasive to some, there is also the social stigma that comes with Bankruptcy, which can leave people feeling unjustifiably ashamed. This sense

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Automatic discharge signifies the end of bankruptcy and occurs 3 years and 1 day after your Statement of Affairs was lodged and accepted by the official Receiver at the Australian Financial Security Authority  (AFSA). The discharge is a process of law that officially concludes the legal status of bankruptcy against the bankrupt. As the discharge is automatic, the Registered Trustee

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