Personal Law: Bankruptcy - Guides
Bankruptcy
11. Bankruptcy and Debts
Firm / Chambers:
Last updated: 23 Jun 2015
- When you are discharged from bankruptcy you will be released from most of your unsecured debts.
- Some debts are not affected by bankruptcy including:
- court penalties and fines;
- penalties for parking, traffic and other state law infringements;
- unliquidated damages subject to exceptions;
- student assistance and supplement loans such as HECS, HELP and SFSS;
- child support and family assistance;
- debts incurred after the commencement of your bankruptcy; and
- debts incurred by fraud.
- You will need to continue to pay these.
- If a debt is secured against an asset such as a mortgage on your house or motor vehicle and you fail to maintain repayments the secured creditor can sell that asset.
- Any shortfall between the mortgage amount and the sale price achieved by the secured creditor will be covered by your bankruptcy.
- Any legal action taken against you regarding your unsecured debts must cease.
- If your creditors continue to demand payment you should let your trustee know so that they can inform those creditors of your bankruptcy.
- If creditors continue to press you for payment you may contact the Australian Competition and Consumer Commission (ACCC) and lodge a complaint.
- If you think you may need legal advice our free Find a Lawyer directory may help put you in touch with the assistance you need.
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