Bankruptcy is a legal process where you’re declared unable to pay your debts. It can release you from most debts, provide relief and allow you to make a fresh start. You can enter into voluntary bankruptcy. It’s also possible that someone you owe money to (a creditor) can make you bankrupt through a court process.
It is possible to make arrangements with creditors that do not require you to go Bankrupt and in other instances the bankruptcy period can be shortened and even in some instance annulled greatly assisting your future credit worthiness.
Bankruptcy does not extinguish a loan that is secured by an asset, but if the asset is jointly held and the joint holder is not involved with the bankruptcy that asset may be negotiated and held by the bankrupt.
You will have a trustee that will manage your bankruptcy.
A trustee is the person or entity that manages your bankruptcy. They work with you, and your creditors, to achieve a fair and reasonable outcome for all. During bankruptcy, you have an obligation to provide information to your trustee, including changes to your circumstances. This may involve supplying books, bank statements and other documents that the trustee asks you to provide.
When you apply for voluntary bankruptcy, you are able to nominate a registered trustee of your choice. If you don’t nominate a trustee, we normally appoint the Official Trustee (AFSA). In some cases, the Official Trustee may transfer the administration of your estate to a registered trustee.
Bankruptcy may affect your income, employment and business.
If you earn over a set amount, you may need to make compulsory payments to your trustee. There may also be some restrictions on your employment and running a business.
Bankruptcy normally lasts for 3 years.
Your bankruptcy period starts from the day the trustee accepts your bankruptcy application. If a creditor makes you bankrupt, the bankruptcy period starts from the date you file a statement of affairs that is accepted. In some cases, your trustee can lodge an objection to extend the bankruptcy for up to eight years.
In this area of law Christopher Garlick has had a great deal of experience and his written submissions are very complex and detailed as well being known as a formidable opponent when on his feet in Court.
If you require the representation where your case is fully ventilated and all aspects presented without fear, then you are invited to consider Christopher Garlick to represent your client, or if a direct client, yourself.