Bankruptcy is a legal status for people who can no longer pay their debts as they fall due.
If a person is declared Bankrupt it means that ordinarily, the Bankrupt person’s creditors are unable to collect debts from the Bankrupt person. It is important to note, however, that not all debts are covered by bankruptcy. Debts that a Bankrupt person must continue to pay during bankruptcy include, but are not limited to:
- Child support and maintenance;
- Court fines and reparation;
- Debt incurred after bankruptcy has been declared;
- Secured creditors & debt.
If you have debts of $1,000 or more, you can apply for bankruptcy. You can apply for bankruptcy by completing an application for adjudication and a statement of affairs and filing these with the Official Assignee. Creditors who you owe more than $1,000 to can also ask the High Court to make you bankrupt.
If you would like to seek advice about debt collection and/or bankruptcy, contact the friendly team at Wakefields Lawyers today. You will deal directly with a qualified bankruptcy practitioner who will take the time required to understand the details of your situation and advise accordingly on a broad range of available legal options.