Voluntary Bankruptcy Brisbane

An insolvent individual who has a connection to Australia can voluntarily declare for bankruptcy by completing the following forms:

  • Debtor’s Petition
  • Statement of Affairs

The period of a bankruptcy is 3 years however a Trustee can extend the term to 5 or 8 years from the date of filing of the Statement of Affairs should the bankrupt not be cooperative or breach certain conditions.

voluntary bankruptcy brisbane

Voluntary Bankruptcy Brisbane, Brisbane Debt Solutions will take care of it!

An individual must provide complete and correct details of their assets, liabilities, income, financial affairs and associated entities in the Statement of Affairs.

The Bankruptcy Act 1966 provides a mechanism for the protection of individuals and their creditors.

The divisible assets of a bankrupt vest in the Trustee in Bankruptcy for sale and the bankrupt does not have authority to deal with those assets. There are a number of exemptions that individuals are able to retain as bankrupts – some examples follow:

  • Motor vehicles with a value exceeding $7,700
  • Tools with a value exceeding $3,750
  • Funds in a regulated superannuation fund
  • Assets held as Trustee
  • Necessary household items
  • Life insurance or endowment policies
  • Certain damages and compensation payments
  • Sentimental property

A bankrupt is subject to annual income assessments to determine if they are liable to pay compulsory income contributions into their bankrupt estate. A person with no dependants may earn an after-tax income of $54,736.50 before being liable to pay any income contributions.

A bankrupt must disclose their bankrupt or debtor status when seeking to obtain goods or services on credit, by hire purchase or cheque; when leasing, hiring or promising to pay for goods and services; or when seeking to obtain an amount by promising to supply goods or render services for amounts exceeding $5,546.

A Trustee in Bankruptcy will undertake investigations into the affairs of the bankrupt which include inquiries into any:

  • Preferences
  • Undervalued transactions
  • Transfers to defeat creditors

A bankruptcy does not release an individual from the following: 

  • Child support payments
  • Maintenance debts
  • Various student loans (HECS / HELP)
  • Files or penalties of the Court
  • Liabilities arising from fraud

Contact our experts at Artemis Insolvency for any queries you may have regarding the implications and consequences of a bankruptcy and completion of your Statement of Affairs. We are also available to administer your bankrupt estate should you wish to file for bankruptcy.