Declaring Bankruptcy Brisbane, Sydney, Melbourne
The Bankruptcy Act 1966 provides a mechanism for the protection of individuals and their creditors in certain situations. When a company is declared bankrupt, its assets become the property of the Trustee in Bankruptcy for sale. Likewise, the bankrupt does not have authority to deal with those assets.
There are a number of exemptions that individuals retain in bankruptcy proceedings.
See examples below:
- 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
Due to the National Commission on Financial Disclosures, bankrupts have to provide annual income assessments which can determine whether or not they are liable for compulsory income contributions into their bankrupt estate.
Such a person could earn $54,736.50 before being liable to pay any income contributions.
People who are bankrupt or debtors must disclose their 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.
Please be aware that bankruptcy does not protect you from child support payments, maintenance debts, HECS? HELP debt, court fines or sanctions arising from fraud.
For help with bankruptcy and the next step toward financial stability, please contact Brisbane Debt Solutions.
Please note that, as Brisbane Debt Solutions’ website is a general information service, the information or advice given does not take into account your particular objectives, financial situation or needs.
You should carefully consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.