Declare Bankruptcy

Bankruptcy is broken up into two periods: the ‘undischarged bankruptcy’ period that lasts for three years, during which time the restrictions imposed by the Bankruptcy Act apply. The second period is called ‘discharged bankruptcy’, which lasts for a further two years where no restrictions apply.

All bankruptcies are recorded permanently on a historic government database called the National Personal Insolvency Index (NPII).

Most unsecured debts can be cleared by bankruptcy (credit cards, personal loans, tax bills). However child support, HECS/HELP and fines cannot be included in bankruptcy.

Bankruptcy isn’t a punishment. However, it is reasonable that creditors should get some money if the person filing for bankruptcy is a high-income earner. During the ‘undischarged bankruptcy’ period (three years), if you earn more than the income threshold, you’ll be asked to make ‘bankruptcy income contributions’. Above the threshold, 50% of your after-tax wage goes to your trustee.

This is the process Beyond Debt follows to help clients who believe bankruptcy is the right solution for them.

• We assess your financial situation.
• You formally engage us to act on your behalf.
• We deal with your creditors on your behalf.
• We prepare and lodge your bankruptcy documents.
• Once your bankruptcy has been processed, your creditors are notified and must cease all collection activity and contact with you.

The legislation surrounding bankruptcy is complicated. However, our consultants are happy to answer any queries. Remember, bankruptcy should be considered only as a last resort.