If a person borrows money to buy goods, and gives the lender security over those goods, the debt owed to the lender is a secured debt or consumer mortgage. It is often a term of the consumer mortgage that the loan ...

A bankrupt is allowed to keep vehicles used for personal transport up to a certain value. If there is equity in the car that exceeds the indexed amount, the trustee can sell the car and the indexed amount is returned to the ...

Debt agreements are regulated under Part IX of the Bankruptcy Act 1966 (Cth). This part describes the debt agreement process, and includes changes that commenced on 27 June 2019. A debt agreement is a legally binding agreement between a debtor and their creditors to reach a compromise about ...

With some exceptions, a bankrupt's real estate and personal property vests in the Trustee. This is so whether the property is situated in Australia or elsewhere [Bankruptcy Act 1966 (Cth) s 116, Bankruptcy Regulations 2021 (Cth) regs 27-30]. Property includes the bankrupt's interest ...

People who become bankrupt also face many disadvantages, for example: bankrupts receiving over a certain income must pay contributions during the bankruptcy (but not from social security payments), and this amount is indexed. For up to date information regarding the ...

Bankruptcy is generally a last resort. However, it can have some advantages, for example: Most debts are extinguished. Once a bankrupt is discharged, provable debts incurred before the date of the commencement of the bankruptcy are automatically and totally cancelled with a ...

Notice of Intention to Declare a Debtor's Petition Subject to certain exceptions a debtor may present to the Official Receiver a declaration to present a debtor's petition [Bankruptcy Act 1966 s 54A]. Once accepted this has the effect of freezing ...

Voluntary (debtor's petition) Anyone who owes a debt of any amount to another person can enter bankruptcy voluntarily by filing a debtor's petition with the Official Receiver at Australian Financial Security Authority (formerly ITSA). AFSA provides a 'one stop service' ...

Only people can be made bankrupt (not companies). Companies cannot become bankrupt under the Act; they are wound up (or liquidated) under the Corporations Act 2001 (Cth). Where there is a partnership, all or a majority of the partners in a business file ...

After carefully considering the advantages and disadvantages of bankruptcy and after taking the best available advice, it may be that, for some people, bankruptcy is the most desirable solution. Such people may include: pensioners or beneficiaries who do not own ...