Obligations Of Bankrupts In Australia

Filing for Bankruptcy

When you are filing for bankruptcy, the first and foremost obligation is to have a trustee who will manage your bankruptcy. This can either be an official trustee or a registered trustee. The bankrupt individual may nominate a trustee of their own as well.

Filing for bankruptcy may allow for some financial ease, but it comes with several obligations on the part of the one declaring it. An individual who is filing for bankruptcy is obligated to provide any information that a trustee requires of his or her past and current financial situation. This includes all your bank statements, salary slips, details of all assets, details of all debts, and all other business incomes.

Obligations and Consequences

Once you have filed for bankruptcy and your application is accepted, your employment and income are taken into account and if you earn over a certain threshold, you must make compulsory payments. Your ability for travelling or crossing borders is restricted as well and you are not allowed overseas travel, or you must obtain permission from your trustee in order to be able to do so.

Next, your trustee contacts the creditor or creditors and notifies them of your bankruptcy which prevents you and the creditors from contacting each other for debts. As it is the trustee who is managing your bankruptcy, you may not sell any assets without permission, while your trustee is able to sell all of your assets including all of your properties and your personal house. You are, however, allowed to keep certain household items, tools that you need for work, and one or more vehicles. All of these items have set limits of monetary value that you are not allowed to exceed.