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 (bucket).

Your credit rating will have a mark against it for five years. However, most of the people I work with say they already have a bad rating.

Another downside is that your name and details with be on the government’s National Personal Insolvency Index for life, unless there is a real risk to your safety. However, I never found this to be a problem.

During the three years of bankruptcy you have the inconvenience of obtaining the Trustee’s written permission for your overseas travel.