FAQs | What Happens When You Become Bankrupt?

Bankruptcy offers you permanent protection from most debts you cannot pay. There are some debts that are not cleared by bankruptcy however and these include court-imposed fines, Centrelink debts incurred by fraud, HECS/HELP/SFSS debts, debts incurred by fraud, unliquidated damages, and monies owing on CSA assessments. Once you become bankrupt the debts, covered by bankruptcy, transfer to your bankrupt estate and are no longer your responsibility.

For further information on bankruptcy, we recommend our articles ‘Pathways to Bankruptcy – Essential Facts’, ‘Life During Bankruptcy’ and ‘The Bankruptcy Option Explained’.

Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email helpdesk@nichollsco.com.au.