Does bankruptcy clear all debts

Does my debt go away?

Does my debt go away?

As soon as you become bankrupt, all debts covered by your bankruptcy are gone forever. There are no conditions, it’s absolute.
Having said that, I recommend that you take a step back and think about whether you should pay some of your debts (without using credit). I have prepared a checklist below, to help you consider whether it is in your best interest to let all of your debts be removed by bankruptcy.
  • Do you need to pay your outstanding rent to ensure you have accommodation?
  • Do you need to pay your electricity and gas bills for continued heating and lighting?
  • Do you need to pay your telephone bill to keep your telephone number and internet service?
  • Do you need to pay your traffic fines to be able to keep your driver’s licence and register your car?
  • Do you need to continue to keep paying the monthly loan payments on your car to be able to have transport?

I hope this helps you. I recommend you work out how your life will work once you become bankrupt. I did this and it made the process much easier for me. If you have any questions please call me on 1300 794 492 or hello@understandingbankruptcy.com.au.

I also recommend you read ‘Types of Debt’ on this website as it details debts that are not covered by bankruptcy.

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