Bankruptcy Advice from the Horse’s Mouth

Bankruptcy and gambling.

It is an offence under the Bankruptcy Act if you have increased the extent of your insolvency by gambling. However, it is the Australian Financial Security Authority (AFSA) position that if gambling is a problem it is rare that they will refer the offence for prosecution. My observation is it would have to involve funds … Read more

Is my HECS debt included in my bankruptcy?

No, you remain responsible for your HECS debt with it continuing to be paid when you lodge your tax return. If you have any questions on bankruptcy, call 1300 060 122 or email your question to, helpdesk@nichollsco.com.au and we will help you without charge or obligation. Remind us to also email our ebook to you. … Read more

What is the period of bankruptcy?

Three (3) years and one (1) day. You are automatically discharged from bankruptcy – it does not require lodging an application. If you have any questions on bankruptcy, call 1300 060 122 or email your question to, helpdesk@nichollsco.com.au and we will help you without charge or obligation. Remind us to also email our ebook to … Read more

Will my partner be affected by my bankruptcy?

Bankruptcy will have no relevance to your partner’s separate assets and income. Your partner will however become involved in your bankruptcy if you have joint assets and or debt. For example, your partner would become involved in your bankruptcy in the following circumstances: – –        If an asset is jointly owned with you. The … Read more

Are debts from overseas included in my bankruptcy?

Yes, however, it only means that the creditor cannot pursue the debt in Australia. I advise that the overseas creditor will still be able to pursue you, both during and after bankruptcy, for the debt if you travel back to that country. If you have any questions on bankruptcy, call 1300 060 122 or email … Read more

What is a joint debt?

A joint debt is a debt that you share with another person. If you become bankrupt and the other person does not, that person can be pursued for 100% of the debt. If you have any questions on bankruptcy, call 1300 060 122 or email your question to, helpdesk@nichollsco.com.au and we will help you without … Read more

Does bankruptcy put my Self-Managed Super Fund at risk?

When you become bankrupt under the Superannuation legislation you are deemed to be a “disqualified person” and cannot act as Trustee of a SMSF and also cannot be a member of same. You must cease being a trustee of the SMSF immediately and inform the ATO in writing of your disqualified status. During bankruptcy you … Read more

Does bankruptcy put my Super at risk?

No – provided your superannuation is properly held in a regulated fund, approved deposit fund or an exempt public-sector scheme. If you have any questions on bankruptcy, call 1300 060 122 or email your question to, helpdesk@nichollsco.com.au and we will help you without charge or obligation. Remind us to also email our ebook to you. … Read more