How do I become bankrupt and who can assist me with this?
HLB Mann Judd (Insolvency WA) can assist you with any questions you have. We offer obligation free, cost free consultations. Contact our office on 08 9215 7900 to arrange a meeting.
What is the process for declaring myself bankrupt voluntarily?
The process for declaring yourself bankrupt voluntarily is called a ‘Debtor’s Petition’. The process includes the lodgment of a Statement of Affairs and a Debtor’s Petition with the Australian Financial Security Authority. The required forms are set out below:
What happens to my assets when I enter bankruptcy?
During bankruptcy, your “divisible assets” vest in your Trustee. This usually includes real estate, shares, vehicles, tools and cash etc.
Continue reading the FAQs below for more information.
Do I lose my house when I declare bankruptcy?
Upon bankruptcy, your Trustee becomes the owner of your share in any property that is in your name.
How your Trustee deals with your share in property depends on whether it is encumbered and/or owned with other people.
Click this link for further details regarding property in bankruptcy:
Can I keep a car during bankruptcy?
Yes you can; however only up to the allowable limit, presently set at $7,800. This figure represents the equity in a vehicle.
Click this link for further details regarding keeping a vehicle whilst bankrupt:
Can I keep my tools of trade during bankruptcy?
Yes you can; however only up to the allowable limit, presently set at $3,700.
Do I lose all my income whilst bankrupt?
No, however you may be required to make contributions to your estate during the term of your bankruptcy, depending on your level of income and whether you have any dependents.
Click this link for further information:
What can’t I do when bankrupt?
You cannot act as a company director or take part in the management of a Company. There are restrictions on obtaining credit. Assets you purchase during bankruptcy will become available to your Trustee for the benefit of creditors.
Some jobs, registrations and professional roles may be restricting to undischarged bankrupts. Click this link for details regarding employment restrictions:
Can I travel whilst bankrupt?
You must seek the permission of your Trustee before travelling or moving overseas.
You will need to provide the following information to your Trustee:
- Reasons for travel and the countries you intend to visit
- Dates you plan to leave and return to Australia
- Contact details for whilst you are away, including email address, phone numbers and the address of where you will be staying whilst you are away
- Who is paying for your trip or relocation
- If travelling for work, evidence from your employer
- Evidence that your income contributions (if applicable) are up to date
Click this link for further details regarding travel whilst bankrupt: