Check how bankruptcy may affect you

Before you apply for bankruptcy make sure you understand the consequences of bankruptcy so you know if it is the right decision for you.

The answers in the interactive tool below will give you an idea of what to expect. 

This tool does not cover every situation - for more details see Consequences of bankruptcy.

 Time to complete: 3 mins

1 Do you have any child support, court fines or HECS/HELP debts?

Bankruptcy does not cover all debts. Some will still need to be repaid.

For more information see the Debt comparison table and What happens to my debts?

Not all debts are covered by bankruptcy. Some will still need to be repaid.

For more information see the Debt comparison table and What happens to my debts?

2 Are you likely to inherit under someone's will?

If you receive money or property during your bankruptcy you need to tell your trustee. Things like inheritances, most tax refunds, and lottery winnings will normally be taken by your trustee.

For more information see What happens to my money?

 

3 Do you own a house?

If you own or are buying a house or other real estate, the trustee will be able to sell your share of the property.

For more information see What happens to my house?

 

 

If you are renting, you will need to keep paying rent otherwise you may get evicted.

If you own or are buying any land or other real estate, the trustee will be able to sell your share of the property.

For more information see What happens to my house?

 

 

 

4 Do you own a car?

You can keep vehicles up to a certain value (this is called the Indexed Amount, and changes over time) if you use them mainly for transport.

If you owe money on the vehicles, you will need to keep making any repayments otherwise the vehicle might get repossessed.

When calculating the Indexed Amount, the trustee will consider any debts owed and whether the vehicle is co-owned.

For more information see What happens to my vehicle? and Indexed Amounts

For information about the impact of bankruptcy on vehicles (such as a car, motorbike or boat) see What happens to my vehicle?

 

5 Do you have a job?

You may have to pay some of your income to your trustee. How much depends on how much you earn and how many dependants you have.

For an estimate see the Contributions calculator.

See Income and employment for more information.

 

 

If you get a job while you are bankrupt, you must tell your trustee. See Income and employment for more information.

6 Do you own shares?

During bankruptcy, your trustee may be able to take and sell your assets (such as shares, jewellery, artwork, antiques, digital assets or other items of value).

There are some exceptions, like most household items of a reasonable value, most superannuation, and tools of trade up yo a certain value. For more information see Assets that can be taken or sold .

 

 

7 Do you intend to travel overseas while bankrupt?

If you're travelling or moving overseas you must seek approval from your trustee. Your trustee may charge a fee to process your application. For more information see Can I travel overseas during bankruptcy?