Bankruptcy
The law allows you to go bankrupt. In fact, tens of thousands of Australians find bankruptcy to be the best solution for their overwhelming debt each year.
But where to start?
At Aravanis, we’re all about providing you with information about the personal insolvency options available to you without the industry jargon.
The best person to decide the next move for your financial future is you – but you need the right information to ensure your decision is an informed one.
Frequently Asked Questions About Bankruptcy
What is bankruptcy?
Bankruptcy is a legal process that can help people who are unable to pay their debts. It is governed by the Bankruptcy Act and administered by a registered trustee.
How long does bankruptcy last in Australia?
Most bankruptcies last for three years and one day, although obligations can continue in certain circumstances.
Can I keep my car if I go bankrupt?
In many cases yes. Whether a vehicle is protected depends on its value and your specific circumstances.
Can I travel overseas while bankrupt?
You generally need permission from your trustee before travelling overseas while bankrupt.
Will bankruptcy affect my credit file?
Yes. Bankruptcy is recorded on your credit file and the National Personal Insolvency Index.
Can I own a house while bankrupt?
Property ownership during bankruptcy depends on the equity held and ownership structure.
What happens to my income during bankruptcy?
You may need to make income contributions if your income is above the relevant threshold. The amount depends on your income, dependants and circumstances.
Who manages my bankruptcy?
A registered trustee manages the bankruptcy, deals with creditors, reviews assets and income, and explains your obligations during the process.
How do I apply for bankruptcy?
You can apply for bankruptcy by completing the required forms through a Registered Bankruptcy Trustee like Aravanis or through AFSA. Aravanis can explain the process and help you understand whether bankruptcy is the right option.
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Bankruptcy is a legitimate way of resolving overwhelming debt. Yet despite it being the best solution for many Australians drowning in debt, there remain many misconceptions about what bankruptcy may actually mean at a personal level.
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