If you considering declaring bankruptcy in Australia, there are some consequences that you need to be aware of. Choosing to declare bankruptcy has serious and long lasting effects on your life, so it is crucial that you are properly informed before you make this decision.

 

• You may lose some assets

If you have a house or a car worth more than $7,900, you risk losing these assets when filing for bankruptcy. This is because the trustee will need to sell your assets to repay your creditors.

 

2) Your reputation may be affected

If you become bankrupt, this will be permanently recorded on the National Personal Insolvency Index (NPII). This is managed by the Australian Financial Security Authority (AFSA).

 

3) Your bankruptcy will last for at least 3 years

The standard duration of a Bankruptcy is 3 years in Australia. This begins from the day your application is accepted. However, this period may be extended to 5 or 8 years under certain circumstances This includes infringing on your restrictions, which includes but isn’t limited to:

• Leaving Australia without your Trustee’s permission
• Not attend a meeting with your creditors
• Failing to disclose an asset to your Trustee

 

If you would like more information on the consequences of bankruptcy, then please speak to one of our professional and experienced Bankruptcy consultants from Australian Bankruptcy Services. Contact us on our 24 hour advice hotline on 1800 462 767.