- Is there a minimum debts amount before I am able to declare bankruptcy?
- How long does bankruptcy last?
- Can I borrow money during my bankruptcy?
- Can I travel overseas during bankruptcy?
- Will my employment opportunities be limited because of bankruptcy?
- What if I forget to include a debt in my bankruptcy application?
- Will I lose all my assets if I declare bankruptcy?
Is there a minimum debts amount before I am able to declare
To be forced into bankruptcy by one of your creditors you need to have debts of
at least $5,000, however if you wish to declare voluntary bankruptcy there is no
set amount of minimum debts.
How long does bankruptcy last?
Generally speaking most bankruptcies last for 3 years. This period may be
extended if an objection is entered by your bankruptcy trustee.
Can I borrow money during my bankruptcy?
You can certainly apply for loans but most lenders would decline your
application if you are still an undischarged bankrupt. You are required to
notify lenders of your bankruptcy.
Can I travel overseas during bankruptcy?
While you are still an undischarged bankrupt you are required by law to obtain
written permission from your bankruptcy trustee before intending to leave
Australia. This permission should be sought well in advance of the proposed
departure providing reasons for departing Australia, dates of departure and
return, itinerary, and most significantly the details of who will be paying for
your travel. If you decide to leave Australia without your trustee’s permission
or fail to return as agreed before leaving, your trustee may lodge an objection
to your discharge and your bankruptcy will be extended. If your bankruptcy is
cancelled or discharged you no longer require permission before going overseas.
Will my employment opportunities be limited because of
There are no restriction placed in law, on a bankrupt’s employment
opportunities. Typically certain industries will preclude a bankrupt from
holding a job – for example the Police Force or Security Industry. Furthermore a
bankrupt cannot hold certain licenses, such as a liquor license, tax agents
license, real estate (principal) license, builders license, credit license etc.
A bankrupt cannot be a director of a company without approval of the Court.
What if I forget to include a debt in my bankruptcy application?
All unsecured provable debts owed by you at the time of your bankruptcy are
automatically included in your bankruptcy. If you forgot to include a debt in
your a debt in your Statement of Affairs, you will need to contact your
bankruptcy trustee as soon as possible so that they are able to update your
Will I lose all my assets if I declare bankruptcy?
Bankruptcy does not cause you to lose all your assets, however any significant
asset that could be sold in order to use the proceeds to repay your creditors.
You are entitled to retain certain assets under bankruptcy such as general
household furniture and effects. More information on this is provided by ITSA on