Frequently Asked Questions

Does my debt go away?

As soon as you become bankrupt, all debts covered by your bankruptcy are gone forever. There are no conditions, its absolute.

How much can I earn – and how much can I keep? 

If you thought you would lose most of your wages by going bankrupt, stop worrying. The bankruptcy law ensures you have enough money to live on.

Can I keep my assets? 

The answer is yes you can – within limits – if you decide to go bankrupt.

Can I keep my car?

Most of the time, yes, because in almost all the cases I see, the debt is more than the car is worth.

Do I have to go bankrupt because I can’t pay my debts?

If you have debt which you cannot pay, your creditors can go to Court and get an order for the sheriff to come and take your possessions and sell them...

I need to go overseas. Is that possible?

The short answer is yes...

I’ve heard creditors can garnishee my wages. Is that true?

Once you have declared bankruptcy, the answer is no. Your income cannot be garnisheed by your creditors.

Will my boss find out?

No – unless you owe your boss money when you declare bankruptcy. If this is your situation, your boss is a creditor and will be officially notified of your bankruptcy.

What are the downsides to bankruptcy?

You cannot have investments or assets during the 3 years of bankruptcy. Windfalls, lottery wins and inheritances received during bankruptcy will also go into your bankrupt estate...

I gamble. How much trouble am I in?

There’s some information on the government’s bankruptcy website which says a problem gambler won’t be persecuted, as long as...

Can I offer to pay my debts once I go bankrupt?

So many people tell me they want to pay their debts but just can’t do it right now.

Can the Court send me bankrupt?

Yes – your creditors can make application to the court to make you bankrupt.

What happens if I’m a company director?

You could have a problem with the Tax Office if you receive a ‘Director Penalty Notice’.

Do I have to be in the country to go bankrupt?

If you are not in Australia and want to file for bankruptcy, it is not always straightforward.

Anything else I should know?

Yes, I recommend you read this website and write down any further questions you might have.

So, how does it all happen?

Please read ‘How to apply for Bankruptcy’ on this website. I can help you to get started...

The Pros and Cons of Bankruptcy

We often get asked by people who are considering bankruptcy, what are the ‘positives and negatives of bankruptcy’ and what legislation applies to bankruptcy.