Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Bankruptcy law in Melbourne, Australia is primarily governed by the Commonwealth Insolvency Act 1966. It mainly deals with organising the financial affairs of an individual or business unable to fulfil their debt commitments. Declaring bankruptcy in Melbourne absolves an individual of most of their debts but it has significant implications such as restrictions on obtaining future credit and potential loss of assets.
Legal assistance in matters of bankruptcy can save individuals from probable financial and emotional distress. You might need a lawyer if you are unable to pay off your debts, struggling to negotiate with creditors, or unsure about the legal processes and consequences of declaring bankruptcy. Further, it is wise to seek professional legal counsel if you wish to understand alternative debt management solutions.
The Bankruptcy Act of 1966 dictates local bankruptcy laws. If declared insolvent, an individual's assets are entrusted to a trustee (which can be the Australian Financial Security Authority), who then arranges distribution to the creditors. It usually lasts for three years but can be extended. Some debts, such as child support, court fines, student loans, and some tax debts are not covered by bankruptcy. Also, disclosure of your bankruptcy is required when obtaining a loan over a set amount.
No, not all debts can be cleared. Debts related to child support, court fines, student loans and some tax obligations remain.
Typically, bankruptcy lasts for three years, but the duration can be extended under certain circumstances.
Not necessarily. Many household items and work equipment are exempt from being sold to repay debts.
Yes, but the Bankruptcy Act necessitates written permission from the trustee before travelling overseas.
Bankruptcy will affect your credit rating for several years even after discharge, potentially limiting your ability to obtain credit or loans.
The Australian Financial Security Authority is a regulatory body providing important resources concerning bankruptcy. It's also useful to consult resources from MoneySmart, a service initiated by the Australian Securities and Investment Commission (ASIC) to provide guidance on managing money and debt troubles.
If you require legal assistance in matters of bankruptcy, start by seeking out a legal practitioner experienced in the field. Scheduling a consultation will provide you an idea of your options and suggested courses of action. Following this, if bankruptcy is the recommended path, an authorized debt agreement administrator or a registered bankruptcy trustee will be able to guide you through the formal process.
