You’re not alone. In fact, in 2019-20 more than 12,000+ personal bankruptcies were declared in Australia*. So, if you’ve thought it, somebody has probably asked it before.
*Source: afsa.gov.au
All Topics
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 charge or obligation. Remind us to also email our ebook to you. It has great content; we receive a lot of positive feedback.
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 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. It has great content; we receive a lot of positive feedback.
What happens if my property is sold and sale proceeds are insufficient to payout the lender?
Any shortfall incurred from a mortgagee sale will be a debt included in your bankrupt estate. If there is a non-bankrupt co-owner then the mortgagee will pursue that person for the full extent 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 charge or obligation. Remind us to also email our ebook to you. It has great content; we receive a lot of positive feedback.
What happens if I have rates and body corporate fees owing on my property?
Any outstanding rates and body corporate fees owing on the property will be paid when the property is sold.
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. It has great content; we receive a lot of positive feedback.
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 Trustee will have an interest in your share of the asset;
– Your partner is in possession of an asset owned by you; or
– Your partner owns assets that you have contributed towards or assisted with the purchase.
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. It has great content; we receive a lot of positive feedback.
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 you. It has great content; we receive a lot of positive feedback.
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. It has great content; we receive a lot of positive feedback.
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 being sourced for gambling from fraudulent activity to take gambling from a mental health problem to a prosecutable offence.
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. It has great content; we receive a lot of positive feedback.
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