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Bankruptcy law in Brisbane, and across Australia, provides a legal process for individuals and businesses that are unable to pay their debts. The process involves transferring all legal ownership of assets to a trustee who sells these assets to repay creditors. Once declared bankrupt, the debtor is temporarily restricted from taking on new financial responsibilities and creditors are prevented from initiating legal action against them. Bankruptcy usually lasts for three years, but can be extended in certain cases.
Bankruptcy can be a complex process and there are several reasons why you might need a lawyer. These include understanding your rights and obligations, navigating the legal paperwork and process of filing for bankruptcy, and representing you in court or in negotiations with creditors. A lawyer can also advise you on alternatives to bankruptcy and help you plan your financial future post-bankruptcy.
Brisbane operates under the Bankruptcy Act 1966, which is federal legislation that applies across Australia. One key aspect of local bankruptcy law is that secured creditors, such as home loan or car loan lenders, can still repossess and sell the assets secured on the loan if payments aren't made. The law also stipulates that upon declaring bankruptcy, certain assets, the debtor's income, and the subsequent sale of assets are all used to pay off creditors. Furthermore, the law protects superannuation savings from being used to repay debts, under certain conditions.
1. What debts are not covered by bankruptcy in Brisbane? Debts for certain fines, penalties, student loans and child support are not erased by bankruptcy and will still be owed once you are discharged.
2. Can I own property while I'm bankrupt? As a bankrupt, you are not allowed to own property. Any property you own at the time of bankruptcy could be sold to pay creditors.
3. Can I travel overseas while being bankrupt? You are required to obtain permission from your bankruptcy trustee before you travel overseas.
4. Will bankruptcy affect my job? Being bankrupt could have an impact on your employment, depending on the type of work you do. Some professional licenses may also be affected.
5. Will bankruptcy affect my credit rating? Yes, a bankruptcy will appear on your credit report for five years from the date you became bankrupt or two years from the date your bankruptcy ends, whichever occurs later.
The Australian Financial Security Authority (AFSA) and the Financial Ombudsman Service Australia (FOSA) are governmental bodies that provide a wealth of information and support in terms of bankruptcy laws and financial difficulties. Additionally, financial counselling services can provide non-legal advice and engage potential alternatives to bankruptcy.
If you have financial difficulties and bankruptcy seems like an option, your first step should be to seek legal advice. It is important to fully understand the implications of filing for bankruptcy and consider all the alternatives. A lawyer will be able to guide you through these steps, ensuring that you have consumer protection and that your rights are respected throughout the process.
