A Guide to the Bankruptcy Rules in Australia

The Bankruptcy Act 1966 is the primary legislation that governs bankruptcy in Australia. This act outlines the rights and obligations of individuals and businesses who cannot repay their debts, as well as the responsibilities of their creditors and the administration of the bankruptcy process.

The Bankruptcy Act

Under the Bankruptcy Act, an individual or business can be declared bankrupt if they owe a debt of at least $5,000 and cannot pay it or if they cannot pay their debts as they fall due. Once an individual declares Bankruptcy, their assets are sold off to repay their creditors. They are subject to certain restrictions, such as being unable to obtain credit over a certain amount without disclosing their bankruptcy status.

In addition to the Bankruptcy Act, several other pieces of legislation impact the bankruptcy process, such as the Corporations Act 2001, which governs the Bankruptcy of companies, and the Personal Property Securities Act 2009, which affects the disposal of assets.

It’s important to note that the bankruptcy process can significantly impact an individual’s financial future, including their credit score and ability to obtain credit in the future. As a result, it’s recommended that individuals seek professional advice before deciding to declare Bankruptcy. At the Bankruptcy Advisory Centre, our experts can guide you through the process and your options.

Understanding the bankruptcy laws in Australia is critical for individuals and businesses struggling with debt and considering Bankruptcy as a solution. By familiarising yourself with the rights and obligations outlined in the Bankruptcy Act and other relevant legislation, you can decide on the best course of action for your financial future.

Need more information about Bankruptcy Rules in Australia?

“Filing for Bankruptcy will eliminate most of your debts and give you more room to manage your financial responsibilities. If declaring Bankruptcy is the only way out of overwhelming debt, a professional can guide you through the process. We’ll work with you to find the best solution for all your assets within the framework of the law and try our best to ensure your future security.”