Faq

Bankruptcy

How does one end up losing everything? We provide some enlightenment on the topic that evokes the greatest financial fear.

What are my rights and obligations as a bankrupt?
Will one end up in Court?
What are my employment prospects as a bankrupt?
What does it mean when one is declared a bankrupt?
How might I be discharged from bankruptcy?

By annulment of the bankruptcy order upon full payment, or upon successful proposal of settlement of the debt by an offer of composition or scheme of arrangement.

Another way is via a Discharge by the Court, where the Official Assignee (OA) is able to convince the Court that the bankrupt should be discharged. The latter is carried out subject to the discretion of the OA, for instance if the debt does not exceed $500,000 and at least three years has lapsed since the bankruptcy.

The OA will also consider factors, for example, the cause of insolvency, period of bankruptcy, bankrupt's assets, and payments made to the bankruptcy account, the bankrupt's conduct and the general level of co-operation given to the OA in the administration of their affairs.

How is one made bankrupt?