How long does bankruptcy last for?
Bankruptcy normally lasts for 3 years and 1 day from the date you file your statement of affairs.
Can I have the option of paying my debt?
There are different options other than bankruptcy. A declaration of intent allows you to present a debtors petition which gives temporary relief from creditors while you figure out your options. A debt agreement is a binding agreement to pay a sum you can afford. A personal insolvency agreement is an arrangement with your creditors to pay an agreed amount.
What are the impacts of bankruptcy?
1. Sole traders can still use their ABN to generate income
2. You will have a trustee that will manage your bankruptcy
3. Your name does appear on the National Personal Insolvency Index
4. Most debts are covered such as credit card debt, utility bills and unsecured personal loans. Bankruptcy does not always cover Centrelink or ATO debts. Child support, court fines or HECS/HELP debts aren't covered by bankruptcy.
5. You cannot be a company director while you are bankrupt. Certain licenses such as builder's licenses can be cancelled.
OTC Tax & Accounting recognises that going through bankruptcy is an extremely stressful situation and our team is able to liaise with your trustees or administrators to ensure your matters are handled with minimal distress. As always, our staff at OTC Tax & Accounting will handle your tax and accounting affairs with absolute confidentiality and sensitivity.
If you are struggling with debt, there are a range of free options available that can provide financial counselling and emotional support. We recommend getting help if you are becoming stressed about your financial situation.
National Debt Helpline 1800 007 007 http://www.ndh.org.au/
Salvation Army Moneycare (07) 3075 4130 https://salvos.org.au/need-help/financial-assistance/financial-counselling/
Beyond Blue 1300 224 636 https://www.beyondblue.org.au/
Lifeline Crisis Support Chat 13 11 14 https://www.lifeline.org.au/get-help/online-services/crisis-chat