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Bankruptcy in Perth, Australia is a legal process where you're declared unable to pay your debts. It can free you from most debts, provide relief and allow a new start. However, it is a serious step with potential future implications such as credit rating impact and restrictions on overseas travels. Bankruptcy in Australia is administrated by the Australian Financial Security Authority (AFSA).
People who are overwhelmed by debt, creditors pursuing payment, or those considering initiating bankruptcy proceedings themselves often need legal help. A lawyer can provide advice on alternatives to bankruptcy, walk you through the legal process, help you understand the legal and financial consequences of bankruptcy, and act in your best interests when dealing with creditors and the AFSA.
Bankruptcy laws in Perth follow the national Bankruptcy Act 1966. Key aspects include that bankruptcy typically lasts for three years and one day, but can be extended. Some debts, like court fines and student loans, aren’t cleared by bankruptcy. You can earn income during bankruptcy, but higher income earners may need to pay contributions. A trustee is appointed to manage the bankruptcy and may sell certain assets to help repay creditors.
Yes, most people automatically discharge from bankruptcy three years and one day after it was declared. However, the bankruptcy trustee can object to a discharge under certain conditions.
Bankruptcy may affect your employment depending on the terms of your employment contract or the specific regulations of your industry.
Yes, but you need to request permission from your bankruptcy trustee. The trustee will decide based on individual circumstances.
Most ordinary household items, tools of trade up to a certain value, most life insurance policies, and most compensation for personal injury are safe in a bankruptcy.
Most unsecured debts are covered by a bankruptcy. That means you will no longer have to repay them. Some debts like court fines and student loans are not covered.
The Australian Financial Security Authority (AFSA) provides a wealth of information about bankruptcy. Also consider reaching out to institutions that provide free legal advice such as Legal Aid WA or a financial counsellor.
If you need legal assistance with bankruptcy, consider seeking legal advice from a lawyer who specializes in bankruptcy. Ensure to understand the costs and benefits before making a decision. If you decide to proceed, your lawyer will help you navigate the bankruptcy process.
