Call for obligation-free advice 1300 060 122

Mythbusters – Common bankruptcy myths

  1. You cannot travel overseas whilst bankrupt – WRONG
    You can travel overseas for work or holiday provided you obtain written consent from your Trustee. If you are doing the right thing you would not expect any difficulty obtaining the Trustee’s consent for your travel
  2. You must give your passport to your Trustee – WRONG
    At Nicholls & Co we do not collect the passport from persons for whom we are administering bankrupt estates. We would need to have significant concerns before we would require a person’s passport.
  3. You lose your super if you become bankrupt – WRONG
    The Bankruptcy Act protects a person’s legitimate savings for retirement and the person’s super fund does not form part of the bankrupt estate
  4. Bankruptcy is advertised in the newspapers – WRONG
    A Bankruptcy Trustee does not advertise the bankruptcy as there is no requirement in the Bankruptcy Act for same
  5. You cannot file for bankruptcy without creditors’ approval – WRONG
    Creditors do not become aware till they are advised of the bankruptcy by the Bankruptcy Trustee
  6. To obtain the protection of bankruptcy you have to go to court – WRONG
    To file for bankruptcy your papers are lodged with a government department called Australian Financial Security Authority (AFSA)
  7. Once you are discharged from bankruptcy you have to recommence paying your debts – WRONG
    When you obtain the protection of bankruptcy, the liabilities become owing by the bankrupt estate and you become debt-free. The liabilities no longer attach to you and that is why creditors cannot take legal action against you. When you are discharged from bankruptcy, the debts remain with your bankrupt estate.

For more information call Nicholls & Co on 1300 060 122 or email helpdesk@nichollsco.com.au.

Alan Nicholls - Registered Trustee

Alan Nicholls’ no obligation help desk

Nicholls & Co provide a free, no obligation ‘help desk’ for people considering bankruptcy – we discuss and explain bankruptcy and answer questions for anyone who is considering bankruptcy. The Nicholls & Co help desk can be accessed by phone  
1300 060 122  or helpdesk@nichollsco.com.au . Alan Nicholls, Registered Trustee in Bankruptcy is also available to answer your questions to enable you to decide if bankruptcy is right for you.