Bankruptcy doesn’t have to be a dirty word

We’re Aravanis; one of Australia’s leading bankruptcy trustee firms and we’re here to cut through the noise on bankruptcy.

Bankruptcy is a legitimate and formal option that’s available to help you resolve your debt. It’s not a moral decision, nor is it a decision that you should be terrified of making.

While there are consequences to bankruptcy, there are also many benefits… and a whole lot of myths. We understand that this makes it challenging for a lot of people to make an informed decision, so our goal is to bust the myths and outline how bankruptcy will really affect you.

That way, you can make an informed decision about your future.


Six top myths that need demystifying

I’ll never borrow again

Many clients assume or have heard that bankruptcy impacts the rest of their lives. In a lot of circumstances, this simply isn’t true. 

Your credit record will be impaired for 5 years in total. The NPII will forever hold a record of your bankruptcy.

But what’s the difference between these two records?

Watch our video to learn more.

I can’t travel overseas

Overseas travel is definitely possible, and the process for getting consent is simple. 

Whether you’re travelling for work or pleasure, your trustee can provide permission. Getting consent usually comes down to whether or not you’re meeting your obligations in bankruptcy.

Most people find that doing the right things in bankruptcy typically result in their overseas travel applications being approved. Watch our video to learn more.

I’ll lose my house

Contrary to popular belief, this doesn’t necessarily have to happen.

“Will I lose my house?” is a good question and the answer can vary depending on your circumstances.

In order to understand how it might be possible to retain property in bankruptcy, you must first understand that your interest in real property will vest in the trustee after you become bankrupt (vest basically means to come into possession or ownership). Watch our video to learn more.

My income will be taken

When people first talk to us, many seem to think that they can only earn up to a certain amount before everything else is “taken” in bankruptcy. This is simply not true.

If you earn over a certain amount (we call it the Base Income Threshold or Actual Income Threshold), then you might have to pay half of your income over this amount. Half – not all – and the amount you pay is affected by how many dependants you support. Watch our video to learn why.

I’ll lose my car

Lots of people seem to think this is true, but in many cases, this concern is genuinely unwarranted.

Not only are asset limits in place to protect your vehicle up to a certain amount, but vehicles also depreciate in value over time. As your vehicle depreciates, so too does your equity in the vehicle. This can result in it falling within the threshold and being protected in bankruptcy.

Watch our video to learn more.

I’ll lose my job

Many people assume that their employment will be terminated because of bankruptcy, but in our experience, this rarely happens.

Do your research – review your employment contract and take a look at the conditions of any professional memberships and licenses you hold.

It pays to know exactly where you stand before you assume you’ll be affected.

Watch our video to learn more.

View all myths and misconceptions

Professional, knowledgeable, helpful, caring, friendly, genuine, easy to deal with, informative, understanding, excellent, prompt, approachable and brilliant.

At least, that’s what our clients have told us.

We’re also one of the largest registered bankruptcy trustees in the country, and named the Best Personal Insolvency Accounting & Bankruptcy Trustee Firm 2019 by Australian Enterpsie Awards.

We work closely with our clients to find outcomes that work for both them and their creditors.

We’re everyday people, just like you. Real people, providing real options and helping you find real solutions.

Learn more about Aravanis
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A few words from some of our clients

“We’re happier as a family, less stressed and have our finances in order and a good budgeting system. That would have never happened if we didn’t go through bankruptcy. ”


“I heard that my credit rating would be badly affected. However having a huge debt would not have helped me get to financial freedom. This was to restart my life with no debt.”


“I always viewed bankruptcy as a stigma and weakness; however after finding myself in a desperate situation it provided me with a means to free myself from the debt I was drowning in. There were no other options for me as I was struggling to repay the credit cards and continue to meet household expenses. I would make a minimum payment on the cards but at the end of the month I would then have to use credit to pay for food and bills before pay day.”


“You hear all sorts of stories and the stigma attached. But when it was explained to my husband and I in simple terms and the figures were shown it was the best option.”


“You feel a bit like a weight has been lifted off you. When you make that final contribution, and you realise, wow, that went pretty quick! You feel a lot more 'educated' about money, and I guess you feel more proactive about making larger life decisions”


“6 months after (discharge from bankruptcy) I saw an advert for novated lease and enquired, and to my surprise they said yes”


“It does not ruin your life; it’s the beginning of a new and exciting chapter in your life. Don't be scared, the end result is amazing.”


“It was the best thing we could have ever done for our family and I would recommend it to anyone that was in the same position as us. Our family life is much better, we now have money to go on trips and do other things with the family. We have even managed to put savings into our bank account.”


“I am and very content (that) I do get to have a another chance”


“You can start again with no debts and plan for the future with no stress ”


“Life improved immediately. 6 or 7 years of trying to beat debt vanished. I finally slept through the night for the first time in many years ”


“Before Bankruptcy, I fear that slowly everything will be taken away from us!! Now after Bankruptcy, I feel that your company has given us a brand new life with no stress at all ”


“My quality of life improved and it made me to be more smarter with my money ”


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