Bankruptcy

How long does bankruptcy last for?

Bankruptcy normally lasts for 3 years and 1 day from the date you file your statement of affairs.

Can I have the option of paying my debt?

There are different options other than bankruptcy.  A declaration of intent allows you to present a debtors petition which gives temporary relief from creditors while you figure out your options.  A debt agreement is a binding agreement to pay a sum you can afford.  A personal insolvency agreement is an arrangement with your creditors to pay an agreed amount.

What are the impacts of bankruptcy?

1. Sole traders can still use their ABN to generate income
2. You will have a trustee that will manage your bankruptcy
3. Your name does appear on the National Personal Insolvency Index
4. Most debts are covered such as credit card debt, utility bills and unsecured personal loans.  Bankruptcy does not always cover Centrelink or ATO debts.  Child support, court fines or HECS/HELP debts aren't covered by bankruptcy.
5. You cannot be a company director while you are bankrupt.  Certain licenses such as builder's licenses can be cancelled.