Bankruptcy Law in Australia and Implications | Go To Court – Kate Muller, Solicitor
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Bankruptcy Law in Australia and Implications | Go To Court – Kate Muller, Solicitor


If you’re thinking about going bankrupt,
seek legal advice before you do. There are consequences of bankruptcy. It extends for
3 years, so during that time you’re not allowed to own assets in your own name. Any income that you earn will be paid to the
trustee. You’re allowed to own assets and income to a certain value. It’s not much,
so things like tools of trade if you’re a tradesman, some personal and household items
and you’re allowed to an income up to certain value but other than that, pretty much everything
else goes to the trustee. For the 3 years that you are bankrupt, you won’t be able
to be director of a company, own a business, you won’t be able to acquire assets, buy
a house, anything of that nature. If you’re gifted an asset, someone gives you property,
that will vest in the trustee as well. For the 3 years you’re bankrupt, you won’t
have a lot to your name. And after bankruptcy, after you’re being declared bankrupt, a
note about your bankruptcy is included on a national personal insolvency index and that
means any future creditor can search to see if your name is listed as a default bankrupt,
so you will show up on a credit check. Every time you apply to increase the value in your
credit card, if you apply for a home loan, if you apply to buy a large screen TV from
a furniture company and you want to apply for some credit, it will show up and it will
probably affect ability to get credit for a lot of things.

3 Comments

  • Gordon Craven

    Whatever you do avoid at all costs dealing with the bankruptcy people at Rodgers Reidy. See the story here about what a family has had to endure by a trustee in bankruptcy who thinks he is above the law: http://pleading.com.au

  • Happy Man

    I think Bankcruptcy is a deliberate act of fraud or false declaring bankruptcy because some people wants to escape and don’t want to pay debts they owe i saw the a current affair program how there’s a loophole in the bankruptcy system and people can go bankrupt I just found out my ex wife filed bankruptcy after filling divorce and hide money or spend money during the divorce and property settlement proceedings just to avoid paying half of mortgage just to escape debt we both incurred during marriage and I realised she hidden money and assets jewellery etc.. offshore in secrecy and she lied to the bankruptcy trustee by not disclosing everything and I am going through divorce property settlement now and my ex wife suddenly started working in accountants firm company or superannuation company so someone has helped her to escape the mortgage loan and debts by filing false bankruptcy to conceal and hide money ? to overseas to family friends relatives or hide into her new boyfriend/partner property or trust funds or cash deposit boxes etc… from me and AFSA bankruptcy trustee and creditors (westpac) seem to blindly believe her lies and apparently approved her filing of bankruptcy I will try to take legal action against my ex because she thinks I am dumb and stupid and she is very clever and very smart in lying about hidden money and assets offshore !!! She’s trying so hard to destroy my financial life and future and she doesn’t care less if I lose the house ? to AFSA or to Westpac Bank ? and I just want justice I want just and equitable and fairness and honesty I don’t want people to get away with this and it’s basically fraud and perjury and bringing the court in contempt and dishonesty and my lawyer isn’t really helping me into my situation I hope to find a really good and reliable lawyer who will do everything in the law. I now have to pay everything every year for about $8000 for a home loan land rates and emergency levy fees etc… and I am not earning enough money to live and survive on low income! ?

  • Happy Man

    They are not humans they destroy everything and leave a trail of destruction they lie to police they lie to Australian governments they declared false bankruptcy and bankruptcy trustee is not doing anything about it so much lies and deception and hiding I am not going to let Australian governments believe them and try to cover up their fraud or dishonesty in family law and bankruptcy I hope Australian taxation office will investigate perjury and fraud in bankruptcy I have evidence to use against the law!!!

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