What happens to my debts after bankruptcy?
Personal Bankruptcy in Australia
Bankruptcy, Personal Bankruptcy, Bankruptcy Information
Your debts are all discharged, meaning they are written off by your creditor (the person or organization you owe them to). Of course if you have a secured debt, which is a debt that is secured against an asset, such as a Housing loan and you decide that you would like to keep the debt through your bankruptcy, then the Bank will maintain title over the asset and you won’t be discharged from that debt but will maintain it and as long as you keep paying it off you can maintain the asset.
All other debts will be written off except for a few such as fines for breaches of the law (eg: speeding fines), debts arising from fraud, maintenance payments and Child Support, some debts due to Centrelink and accumulated HECS (Higher Education Contribution Scheme).
Bankrupt or Bankruptcy
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