Frequently Asked Questions

Does Bankruptcy Reflect Badly On Me?

Bankruptcy does not reflect badly on you, no one has a guarantee that they will not be confronted by financial problems at some point in their life. Bankruptcy is about being responsible for the benefit of you and your family - it is a solution that allows you to resolve your financial problems and get going again. We all have difficulties in various forms during our lives that we must deal with and get past. If you are having financial difficulties, bankruptcy provides the solution for you to deal with and overcome those financial problems.

The best way to demonstrate that bankruptcy is a solution for insurmountable debt, is to note that:

  1. most if not all your debts are extinguished. They are permanently caught by your bankruptcy, as soon as you become bankrupt,
  2. during bankruptcy you can save in your ordinary bank account without limit,
  3. superannuation that you have accumulated over time is protected for your retirement and not available to your bankrupt estate
  4. superannuation your employer pays on your wages during your bankruptcy is protected for your retirement and not available to your bankrupt estate.
  5. your household furniture and effects are protected for you
  6. your cars and tools of trade are protected up to a reasonable amount.
  7. your wages are protected to make sure you have adequate money to live.

If you would like to learn more about bankruptcy and how it may be able to help you,we are here to help. If you have any questions please give us a call on 1300 764 197 or email hello@understandingbankruptcy.com.au

 Further Reading: We recommend our article What is Bankruptcy? How Does it Work? as a good starting place to learn about bankruptcy and it can be accessed here.

Ask Us A Question

Give us a call on 1300 794 492
Alternatively, you can leave us a message and we will get back to you as soon as possible