Frequently Asked Questions

How Does Bankruptcy Affect My Partner in Australia?

If your financial affairs are not interlinked with your partner, your partner will not be involved with your bankruptcy. Your partners financial circumstances will not be relevant to your bankruptcy.

If you own assets jointly with your partner or have joint liabilities, your partner will be involved in your bankruptcy regarding those issues.

If you own a house with your partner the Trustee of your bankruptcy cannot sell the house without your partners knowledge and consent. If your partner does not want the house sold, in these situations the Trustee of your bankruptcy will normally agree to your partner buying out the equity interest of the bankrupt estate in the property, with the existing mortgage remaining in place.

If you and your partner have jointly financed a car and the car is worth less than the amount owing, the monthly payments will have to continue to be paid, otherwise the lender will repossess and sell the car. The lender will then pursue your partner for the total shortfall incurred on sale of the car. The lender would not be able to pursue you and can only lodge a Proof of Debt Form with your bankrupt estate.


We trust we have been of assistance. Everyone’s circumstances are different. If you would like to discuss your specific circumstances or concerns you are welcome to give us a call on 1300 764 197 or email:

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