When you become bankrupt, you are released from those debts that are known as “provable debts”. A provable debt is a debt that you are liable for, or will potentially become liable for, at the time that you are declared bankrupt. If you have a provable debt with a creditor they are no longer able to contact you and demand
Archives: FAQs
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
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
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
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
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 $7,032 (as at March 2024), you must declare that you are a Bankrupt person. If you do not disclose
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 $9,400. 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 $9,400 to you for the purchase of a lesser
Can I keep my tax refund if I go bankrupt?
When you are first declared bankrupt you must disclose to your Bankruptcy Trustee all assets that you both currently hold, and expect to come into possession of. This includes any tax returns that you expect to receive, and depending on the date of your bankruptcy and how up to date your tax declarations are, you may be required to surrender
Can I run a business as a Bankrupt?
Everyone needs to be able to earn a living, and if you run your own business, you might be concerned that bankruptcy will stop you from being able to do so. The good news is that you can still run a business as a bankrupt person. You might find, though, that you have to do things a little differently than
Can I travel overseas whilst I am bankrupt?
One of the major concerns for people who are considering bankruptcy is that they will lose their passport and not be able to travel overseas. It is true that when you are bankrupt you have to give your passport to your Trustee, but it is still possible for you to go overseas. Your Trustee in Bankruptcy must request that your
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