Bankruptcy
15. Discharge from Bankruptcy
Firm / Chambers:
Last updated: 23 Jun 2015
- Generally you will be discharged three years and one day after:
- your petition and statement of affairs was filed if you become bankrupt by debtor’s petition; or
- your statement of affairs is accepted if you become bankrupt by creditor’s petition.
- In certain circumstances your bankruptcy can be prolonged for up to eight years where your trustee objects to your discharge.
- Your trustee may object to your discharge in a number of circumstances including where you have failed to properly disclose your income or assets to them or where you have failed to reasonably assist them.
- If your trustee objects to your discharge you can request that their decision be reviewed by the inspector-general. Your written request must be lodged no more than 60 days after receiving notice of your trustee’s decision.
- Even after your discharge from bankruptcy:
- your name will remain on the National Personal Insolvency Index (NPII). Credit reporting agencies will maintain a record of your bankruptcy on their databases for up to five years or sometimes longer;
- the administration of your bankruptcy may continue if your trustee has not yet finalised investigations or asset sales or if you still have income contributions to pay. Therefore even after discharge you have obligations to:
- assist your trustee to finalise the bankruptcy administration;
- advise if you move house;
- provide details about your financial position upon request; and
- pay any outstanding income contributions;
- you must surrender any secured assets if demanded to do so by a secured creditor; and
- you must pay any debts not covered by your bankruptcy that remain outstanding.
- Some bankruptcies are annulled (cancelled). There are three situations in which a bankruptcy may be annulled which are:
- where you pay your debts in full including your trustee’s expenses and fees;
- where you enter into an arrangement with your creditors being an offer of something less than payment in full; and
- where you successfully apply to the court for an order annulling your bankruptcy.
- If your bankruptcy is annulled your name will remain on the NPII although the record will be amended to reflect the fact that your bankruptcy was annulled.
- Any assets not needed to pay your trustee’s fees and expenses and your creditors will be returned to you.
- Secured creditors will retain their rights in relation to secured assets such as the power to sell those assets if you default in repayments.
View more Information on Personal Law