Bankruptcy When Does It End
Bankruptcy when does it end? That’s reportedly the question individuals ask themselves before filing for bankruptcy.
The standard length of time for a bankruptcy discharge is three to five years, after which all debts are legally discharged and the debtor can move forward without restriction. The Brisbane Trustee or Court will review all the debtor’s materials in order to determine whether the debtor meets discharge requirements at that time.
The Statement of Affairs must contain complete and correct details of an individual’s assets, liabilities, income, financial affairs and associated entities.
The Bankruptcy Act 1966 provides a mechanism for protecting persons and their creditors.
Bankruptcy and Who Decides
When filing for bankruptcy, the most important question to ask yourself concerns who decides whether you can file for bankruptcy.
It can take the discharge process three to five years to be completed, after which the bankruptcy may be annulled.
The process of bankruptcy annulment can be achieved by the following:
- Apply to the court
- Make an offer pursuant to Section 73 of the Bankruptcy Act (Cth). This is an arrangement that you propose to your creditors through your trustee, it can be anything you like. It is recommended that you are to propose something your creditors will accept.
In order for your proposal to be likely to be accepted by creditors, a special resolution must be passed—i.e., one that is greater than 75% in value and greater than 50% in number of the creditors voting on the resolution. If accepted by creditors, you will be relieved from bankruptcy.
Furthermore, if the funds paid to the trustee after a bankruptcy are sufficient to pay off all debts and bankruptcy costs, this may result in the bankruptcy being terminated.
Section 73 is an option for individuals to avoid annulling their bankruptcy. Annulling bankruptcy is when a person can no longer be a part of the original bankruptcy that they declared because now they have to go through a second public announcement of their failed financial situation. Annulling means that the assets and liabilities are taken over by the court instead of being personally owned by the individual.
Section 73 is available to people who have already declared bankruptcy. Under Section 73, the proposal has to be accepted by all creditors of the person in question. If accepted, then the assets re-vest with the person and they are no longer bound by the position of bankruptcy and their financial situation can continue as normal.
Feel free to contact our friendly staff at Brisbane Debt Solutions below. We are here to help and assist you in your time of need.