Take Back Control With Bankruptcy

Once your Bankruptcy is accepted by AFSA and your Bankruptcy begins, your creditors will be notified of your Bankruptcy and contact will cease. Should you receive contact from any creditors after your bankruptcy is accepted, you should simply provide them with your Bankruptcy Number and end the call. If creditors persist, your trustee can be contacted to address the creditor on your behalf.

By completing and lodging a Form 5 – Declaration of Intention to Present a Debtor’s Petition, you may be able to delay your wage being garnished for 21 days.

Permission via an online application form. You will generally also need to pay an application fee only if your Bankrupt Estate is administrated by AFSA. Travelling overseas without permission or staying for longer than your allowed time can result in your Bankruptcy being extended to 5 years.

A Debt Agreement can impact your employment, especially if you hold a professional license or work in certain industries. Some employers may have policies regarding employees entering into Debt Agreements, and certain professional licenses may be affected. It's important to check with your employer or professional licensing body to understand any potential implications for your career.

The Bankruptcy Act does not impose direct restrictions on employment but certain industry associations and licensing authorities improse restrictions, should a member or licensee become Bankrupt. You should check with your relevant licensing authority or professional organisation to determine any impact on your ability to continue in that trade or profession prior to applying for Bankruptcy. Your employer should not be notified, however we recommend reviewing the terms of your employment to ensure you do not have any contractual obligation to remain solvent with your employer Your income will be capped depending on your situation (For example, the threshold for people with dependents is higher than the threshold for a single individual). Any money earned above the set threshold will become a contribution and be distributed among your creditors. If you are made redundant or receive a pay-out after losing your job, some of that money can also be made a contribution and distributed to your creditors.

Your house may be realised during the bankruptcy if the value of that property (in excess of secured loans) can be used to satisfy any debt amounts included in the Bankruptcy. There are ways you may be able to keep your family home. You, your spouse/partner or another party may be able to purchase your share of the equity as an alternative to the trustee selling the property. The equity could be purchased through a lump sum amount paid to your Trustee, or could be paid through agreed installments during the Bankruptcy.