How Do you - Follow the Key Aspect of Bankruptcy

The following situations will arise once you have filed for bankruptcy:

  1. Assets
    All your assets will become the property of the Official Assignee.

    The only exceptions are:

    • Furniture and personal effects to the combined total value of $2,000.
    • Money to the value of $400.
    • If you have a trade, then your tools of trade to a total value of $500.

      You will be able to keep these assets subject to the Official Assignee’s approval.

  2. Debts
    The Official Assignee will become responsible for all debts that you had incurred up to the date of your bankruptcy. You don’t have to pay your creditors any more, as the Official Assignee will attend to that.

    You will, however, still be held responsible for the following:

    • Any fines that have been imposed by the courts.
    • Any debts incurred after the date of your bankruptcy.
    • Any maintenance or child support requirements.
    • Any orders that have been made by the courts for reparation.

  3. Your Home
    Your home is a property that becomes an asset in your bankruptcy. This will be subject to claims by other parties who may hold security, such as a mortgage, over your home. The Official Assignee will only take steps to sell your home property if the valuation shows a surplus available after the mortgage has been repaid.

    If the home is registered under the Joint Family Homes Act 1964, then there is specified sum not available to the Official Assignee because it is protected under the joint family regulations. The joint family registration will only be valid if it has been in existence for at least 2 years or if it has been advertised after 3 months.

  4. Vehicles
    The decision of whether you are able to retain your motor vehicles will be up to the Official Assignee. The Official Assignee will take into account the value of the vehicle and the personal situation of you and your family.

    Debt Collection
    Once you become bankrupt your creditors can no longer continue with action to recover money from you.

  5. Hire Purchase
    Any payments for hire purchases are still your responsibility. If the value of the item is greater than the amount owing on them, the Official Assignee may decide to sell the items, pay back the finance owing and apply the surplus to the bankruptcy. If the item has been repossessed and there is still money owing, the debt will become part of the debts of your bankruptcy.

  6. Superannuation Schemes
    Your superannuation policies will have a surrender value and that value will become part of your bankruptcy assets.

  7. Life Insurance
    Any policies that you own and for which you are entitled to a benefit can become the property of the Official Assignee for the benefit of the bankruptcy.

  8. Contributions
    If you are employed and on a wage or salary, the Official Assignee may ask for regular payments from you as contributions towards the bankruptcy. If you cannot make any payments then you are free from this requirement. This is also the case if your only income is a welfare benefit.

If during the time of your bankruptcy your circumstances change and your finances improve, you must advise the Official Assignee so that a fresh assessment can be made of your circumstances. Any earnings by a spouse or partner of a bankrupt (who is not a bankrupt) do not pass over to the Official Assignee.

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