Registered Bankruptcy Trustees

As outlined in the Bankruptcy Act 1966, under bankruptcy law, the period of personal bankruptcy in Australia typically lasts 3 years and 1 day from the date your debtor’s petition is accepted. After this, you're discharged as a bankrupt person. However, your bankruptcy proceedings may remain active if your trustee continues insolvency proceedings, such as investigating financial conduct or finalising the sale of property.

Bankruptcy appears on your credit file and the National Personal Insolvency Index for up to 5 years from the date you enter bankruptcy, or 2 years from your discharge, whichever is later. These records are maintained by the Australian Financial Security Authority (AFSA).

You can declare voluntary bankruptcy by lodging a debtor’s petition with AFSA. Our experienced bankruptcy lawyers can assist you in completing and submitting the required bankruptcy notice and forms. This begins the formal process and provides immediate relief from unsecured debts, marking your first step toward financial recovery.

There are two main types of personal bankruptcy:

• Bankruptcy with assets: With your trustee’s permission, you may retain essential items such as a vehicle or your home.
• Bankruptcy without assets: If you don’t own any assets, your trustee will calculate your total debts and liaise with your creditors. They’ll outline your financial obligations to help lay the groundwork for a fresh start.

There is no application fee for declaring bankruptcy voluntarily through AFSA. However, your trustee may recover certain administrative costs during the process from available assets, if any.

Bankruptcy typically covers most unsecured debts, such as credit cards, overdue rent, and utility bills. It does not cover:

• Court-imposed penalties
• Student loans
• Child support
• Debts incurred after bankruptcy begins

Additionally, bankruptcy can impact your ability to obtain credit, restrict certain types of employment, and affect overseas travel.

If you’ve entered a personal insolvency agreement or debt agreement before declaring bankruptcy, different rules may apply. It’s important to understand the differences between bankruptcy and debt agreements.

There is a distinct difference between domestic and international travel for those who have been declared bankrupt. While there are no restrictions on domestic travel, a bankrupt person must obtain permission from their trustee for any international travel. This includes submitting a formal application and possibly paying fees. Travelling overseas without approval may result in further legal proceedings under Australian bankruptcy law.