"Bankruptcy",
What Does It Mean?
The words
"bankruptcy", "undischarged bankrupt",
"going bankrupt" and so on, all come from the Federal
Act of Parliament called The Bankruptcy Act, 1966. This Act
has been around the New South Wales and Australian Legal system
since the 1880's.
So "going
bust" is nothing new. In fact, over 25,242 people were
declared bankrupt in Australia in the year ended 30 June 2007.
The word "bankrupt" specifically relates to people,
i.e. not companies. If your company is in trouble, The Bankruptcy
Act, 1966, does not apply, but rather the Corporations Act 2001
does, (see Home Page for details on companies in trouble).
If you click
on the information sheets below, you will find out precisely
what it means to be a bankrupt. Some important points are: you
can lose your house; you can lose any shares you own; you have
to contribute some income if your income is over and above approximately $48,000.00
per annum gross; you can lose your car if it's worth more than
$6,300.00; you have to hand in your passport; you can't be a
director of a company; but you do keep your superannuation!
As stated
on information Sheet "A", you can voluntarily declare
yourself bankrupt, or wait for a creditor to do it via the Federal
Court of Australia, or Federal Magistrates Court.
Most people
would try to avoid bankruptcy if possible. This can be achieved
by doing a Part X deal with your creditors, (see Home Page for
details on Part X's).
Hopefully,
you will find the below information sheets of assistance:
