Bankruptcy is a legal process, under the Bankruptcy Act 1966 (Cth), where you’re declared unable to pay your debts. Bankruptcy can release you from most debts, provide relief and allow you to make a financial fresh start.
Eligibility for Bankruptcy
You can apply for bankruptcy if the following requirements are met:
- You are unable to pay your debts as they fall due; and
- You are present in Australia or have a residential or business connection to Australia
There is no minimum or maximum amount of debt or income to be eligible.
The Bankruptcy form must be completed and lodged.
LangdonGrant Consent to Act
In addition to the Bankruptcy form, this consent to act must also be completed and lodged. This document ensures that LangdonGrant will manage the administration of the bankruptcy on behalf of the bankrupt.
Consequences of Bankruptcy
- Trustee(s) will manage your bankruptcy administration
- Bankruptcy can affect your income, employment, and business.
- Bankruptcy does not release you from all debts – e.g., fines and penalties from courts.
- You need permission from a Trustee to travel overseas. This is always granted to compliant bankrupts.
- Your details will appear permanently on the National Personal Insolvency Index (NPII).
- Your bankruptcy will appear on your credit file for up to 5 years.
- Your trustee may sell your excluded assets such as real property.
- You may lose the right to take or continue legal action.
Bankruptcy normally lasts for 3 years and 1 day from the day your bankruptcy form is accepted.
You may be able to retain certain assets.
- Tools of the trade: you can keep these tools if their value (current market value) is up to theThreshold Value on the Indexed Amount Form.
- Vehicles: you can keep vehicle(s) you use mainly for transport where their value is up to theThreshold Value on the Indexed Amount Form.
Enquire with our office for a review of your financial circumstances.
Our registered liquidators and bankruptcy trustees provide plans to individuals, companies and creditors facing financial distress.
Commence your plan to recover from financial distress and move on.