Common Questions

What is an unsecured debt? This is where no asset has been provided as collateral. If you don’t pay there is nothing the creditor can take from you until they take legal action and get a judgement from the court.

What is a secured debt?Is a debt where an asset has been offered as collateral for the loan. This means that if you don’t make your payments the creditor could repossess or seize the item and sell it to reduce the amount you owe. Common examples are home loans and car loans.

Can I keep my house if I file bankruptcy?   You may be able to keep your house if some factors are present. The two main factors are that you have little or no equity and that you can also make your mortgage payments. Along with this there would have to be a third party (parent, friend etc) who would be able to provide the funds to satisfy the Trustee’s costs’ along with the value of the equity in the property. Because there are numerous possible circumstances if you want to try and keep your house give us a call and we will help you if its possible. *Upon being made bankrupt any equity in your property will vest with your bankruptcy trustee.

Do I have to go to court when I file bankruptcy? In processing thousand’s of bankruptcies we have never had a client who had to go to court about it.

Should I file for bankruptcy? Without knowing your circumstances that question can not be answered. Give us a call and we can let you know what you may or may not be able to do along with an idea of what other people in your situation have done.

What does a bankruptcy trustee do? Oversees your financial affairs for the term of your bankruptcy. The thing to note about this is that most people who go bankrupt never speak to their Trustee nor does their Trustee have any real involvement in their lives.

Do I have to file bankruptcy with my spouse? No. Just because one partner declares bankruptcy it doesn’t mean that the other partner has to or will even be affected.

Will my name be in the paper if I file bankruptcy? Have you ever seen a list of bankrupt people in the newspaper? It is not something that happens unless you are famous or known to the media.

Will my employer find out if I file bankruptcy? If you choose voluntary bankruptcy no one will have to find out about it except who you choose to tell. You don’t have to tell your employer unless it is conditional upon your employment. If this is the case you will know about it already.

Will I be able to get student loans after filing bankruptcy? If you mean HECS the answer is yes. By going bankrupt you won’t be prevented from higher study.

How long will it affect my credit after filing bankruptcy? Your credit file will be marked for five years.

Do I have to include all my bills when I file bankruptcy? You are obligated to include all of your debts.

Can a creditor object to me filing bankruptcy on them? No, if you want to go bankrupt you will be able to regardless of what a creditor has told you.

Can I rent an apartment or a house after filing bankruptcy? Yes you can. Being bankrupt doesn’t mean you are not allowed to rent a place to live. You need to be aware that if the land lord or estate agent know you are bankrupt they may see that as a negative when they process your application.

How much debt to I need to file bankruptcy? There is no maximum or minimum. If you can’t pay your debt’s then you can declare bankruptcy.

Can bankruptcy stop wage garnishments? Yes it does. As soon as you are bankrupt the law stops the garnishee.

Can I file bankruptcy on income taxes owed? Yes.

How long does it take to file bankruptcy? Through a professional service like ours it will take about 3 working days.

Do I make too much money to file bankruptcy? If you can’t pay your debts you are not earning too much money. We have had clients earning $5,000 per week go bankrupt.

Is filing bankruptcy moral? Yes it is. Moral beliefs can be individual and vary upon the same circumstances however generally speaking bankruptcy is moral and if required it is something that you need to do for yourself and particularly your dependants if you have them.

What assets can I keep when I file bankruptcy? Generally your household items and furniture along with a car up to a certain value and tools of trade up to a certain value. You will also get to keep your sanity, most advisers forget to mention this. 

Can I file bankruptcy on payday loans? Yes you can. Do not worry about what the lender has told you. They do not have any special rights unless the loan is secured (see above, what is a secured loan).

Can I add debts that I forgot to include in my bankruptcy? Yes, if you forget a debt at the time of your bankruptcy and it later comes back to haunt you it can be added after the bankruptcy is processed.

What happens to my tax refund when I file bankruptcy? Firstly this depends if you owe the tax office money. If you do they will keep your tax refunds during your bankruptcy until you are discharged from your bankruptcy. Secondly, if when you go bankrupt you have outstanding tax returns to do then those refunds will have to go to your trustee. Call us and seek advice on this issue.

What is a bankruptcy discharge? This is when your bankruptcy ends and will normally be 3 years after you went bankrupt. Your bankruptcy could end early for a number of reasons however these are also rare. Seek advice if you think this may apply to you. However there is rarely any circumstance where going bankrupt to then attempt and early discharge is favourable to you.

What is a Debt Agreement? A Debt Agreement is a lawful way of creating a new agreement to cover all of your unsecured debts so that you do not have to go bankrupt. The law clearly says that a person doing a Debt Agreement is not bankrupt.

Will my centrelink be affected by bankruptcy? No. Your entitlements will continue unaffected.

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