Creditor’s quick guide - bankruptcy and unsecured debts

The table below is a guide only.  Claims lodged in bankrupt estates will be considered by the trustee.

Type of debt

Class

Can I continue to demand payment from the bankrupt?

What are my rights?

Credit card, store card, etc

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Personal loan, business loan

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Trade creditor (no retention of title)

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Utilities (gas, electricity, phone (including mobile), internet, pay-TV)

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate. The Bankruptcy Act does not force you to continue supplying the bankrupt

Unpaid employee entitlements (wages, leave)

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate. You may also wish to lodge a General Employee Entitlements and Redundancy Scheme (GEERS) claim (where the employer went bankrupt before 5 December 2012) or a Fair Entitlements Guarantee (FEG) claim (where the employer went bankrupt on or after 5 December 2012)

Legal fees / accounting fees

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate or, if you have a lien over work you did, to exercise that security interest

Medical fees

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Court-imposed fines

Not provable and not extinguished

Yes

Fines are still payable during and after bankruptcy

Court-ordered restitution amounts

Provable and extinguished if the amount was fixed before the date of bankruptcy

No, if the amount was fixed before the date of bankruptcy

You have the right to lodge a claim in the bankrupt estate

Pawn shop / pay day lender

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Child support / maintenance

Provable and not extinguished

Yes

These debts are still payable during and after bankruptcy

Unpaid rent

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Debts relating to property damaged when the bankrupt was a tenant

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Overdrawn accounts

Provable and extinguished

No

You have the right to lodge a claim in the bankrupt estate

Debts incurred after the date of bankruptcy

Not provable and not extinguished

Yes

These debts are not provable in bankruptcy and can be pursued

Debts incurred by fraud

If provable, are not extinguished

Yes

These debts, if provable in bankruptcy, are not extinguished and can still be pursued