Best Bankruptcy Lawyers in Carlton North

About Bankruptcy Law in Carlton North, Australia

Bankruptcy law in Carlton North, Australia, falls under the federal jurisdiction overseeing personal insolvency and financial hardship. It's a legal process whereby individuals who cannot pay their debts get relief from part, or all of their debts. It can also facilitate a fair distribution of the bankrupt’s property amongst creditors. When declared bankrupt, your assets may be used to pay your debts and your credit rating will be affected for several years.

Why You May Need a Lawyer

You may need a lawyer if you're struggling to manage your debts and considering filing for bankruptcy. A lawyer can provide advice on whether bankruptcy is the best option for you, explore alternatives to bankruptcy, assist you with the filing process, and help you understand your rights and obligations. Bankruptcy comes with long-term financial and legal consequences and a bankruptcy lawyer will guide you through this complex process.

Local Laws Overview

In Carlton North, and throughout Australia, bankruptcy is governed by the Bankruptcy Act of 1966. If you go bankrupt, most of your debts are covered. That means you don’t need to pay them. However, some types of debts are not covered, such as child support, fines, student loans and secured loans. When you declare bankruptcy your most assets either go to the bankruptcy trustee or are protected, such as household items, tools of trade up to an indexed amount and vehicle up to an indexed amount. It’s important to seek legal advice to understand how these local laws apply to your situation.

Frequently Asked Questions

1. Can I keep my house if I declare bankruptcy? If you have equity in property, this might need to be sold by your bankruptcy trustee to pay your debts.
2. What is the bankruptcy period? In Australia, the bankruptcy period is usually 3 years but can be extended.
3. Does bankruptcy erase all my debts? Most debts are erased when you file for bankruptcy, however, some, like student loans, child support, fines and secured loans, are not.
4. Will bankruptcy affect my credit score? Yes, bankruptcy will have a significant effect on your credit score for several years, little more in some cases.
5. Can I travel overseas while bankrupt? It's possible to travel overseas during your bankruptcy, but you need written permission from your bankruptcy trustee.

Additional Resources

Additional resources include the Australian Financial Security Authority (AFSA), which is the government body that oversees the administration and regulation of the personal insolvency system in Australia, and may provide useful information. You may also access free financial counselling services provided by the Australian government.

Next Steps

If you are considering filing for bankruptcy, you should first speak with a lawyer specializing in bankruptcy law. They can help you understand your options, the process, and likely outcomes of filing for bankruptcy. Consider contacting the local law society for a referral.