Discharge: How and when does my bankruptcy end?

Discharge: How and when does my bankruptcy end? The provider of this information is Insolvency & Trustee Services Ausralia.

DISCHARGE HOW AND WHEN DOES MY BANKRUPTCY END? Reproduced by express permission form the Commonwealth Government, Insolvency and Trustee Services Australia. June 2004 Edition What is discharge? Discharge is the end of bankruptcy. When will I be discharged from bankruptcy? Discharge from bankruptcy normally happens automatically 3 years and 1 day after your Statement of Affairs was lodged with and accepted by ITSA. If you have been made bankrupt by the Court your Statement of Affairs was probably lodged some time after the date of bankruptcy. There is no need to apply for discharge and there is no fee. You can get written confirmation of your discharge from bankruptcy by: asking your trustee searching the public record (the National Personal Insolvency Index or NPII database). More information is available in the pamphlet: Searching the Public Record In some circumstances, you can be bankrupt for longer than 3 years for reasons discussed later in this pamphlet. What happens after discharge? Your name will appear on the NPII forever. The administration of your bankruptcy by your trustee may continue after you are discharged. Your trustee may not have finalized investigations or the sale of assets, or you may still have income contributions to pay. What are my legal obligations after discharge? You must assist your trustee to finalise the administration of your bankruptcy. You must advise your trustee of changes in your address or financial circumstances if requested to do so. You must pay outstanding income contributions. Assets in your bankruptcy which have not been sold by your trustee before the date of your discharge are not automatically returned to you. In limited circumstances, your trustee has a time limit of 6 years after your discharge to deal with assets (other than cash). More information is available in the pamphlet: Assets: What happens to my assets if I go bankrupt? Your trustee is the person who administers your bankruptcy or Part X agreement; either a registered trustee or ITSA. See the Prescribed Information booklet for definitions of other bankruptcy terms What happens to my debts after I am discharged? You are released from certain debts when you are discharged from bankruptcy. However, there may be some debts that you will still have to pay. Debts you still have to pay during and after bankruptcy 1. Some debts are not provable in bankruptcy. Creditors with these types of debt cannot receive any money from your bankrupt estate but they can continue debt recovery action against you even during bankruptcy eg: penalties and fines imposed by a court damages from accidents (eg car accidents) unless, before bankruptcy, the sum of damages has been fixed by a court judgment or you have a written agreement with the other party student assistance/supplement loans. 2. Assets that you wish to keep but which are secured to a creditor (eg house mortgage). You will need to keep paying for these assets or the creditor will take them back. More information is available in the pamphlet: Assets: What happens to my assets if I go bankrupt? 3. Any new debts created on or after your date of bankruptcy. Debts you still have to pay after your discharge Creditors of certain types of debt (provable debts) can receive money from your bankrupt estate and can also continue debt recovery action against you after you are discharged from bankruptcy eg: child support debts maintenance accumulated HECS (Higher Education Contribution Scheme) debts owing when you became bankrupt, excluding any amount shown on a notice of assessment issued by the Australian Tax Office (ATO) before you became bankrupt – ask the ATO if you need more information debts incurred by fraud. More information is available in the pamphlet: Debts and Creditors: What happens to them if I go bankrupt Released from debt – you are no longer liable for or have to pay this debt Provable debt – an amount for which a creditor is entitled to claim a dividend in your bankruptcy Can I be discharged in less than 3 years? No. However, in some circumstances, you may be able to have your bankruptcy annulled (cancelled). A bankruptcy can be annulled in three ways: 1. Payment in full – your creditors and your trustee’s fees and expenses have been paid in full. This usually happens because your trustee has sold assets and/or you have paid money ot your trustee from your income or another source. 2. Composition or arrangement – creditors accept an offer made by you through a trustee for finalizing your debts. This usually arises when a friend or family member helps by offering a lump sum to your creditors. The offer must also provide for payment of your trustee’s fees. 3. Application to the Court – in some limited circumstances, you may apply to the Federal Court or Federal Magistrates Service to have your bankruptcy annulled if you think you should not have been made bankrupt or should not have lodged your Debtor’s Petition. You should seek legal advice before making such an application. More information is available in the pamphlet: Annulment: Can my bankruptcy be cancelled? Can I be bankrupt for more than 3 years? The period of your bankruptcy may be extended to 5 or 8 years if your trustee lodges an objection to your discharge with ITSA. Your trustee may lodge an objection on a number of grounds, such as your failure to: provide information to, and assist, your trustee disclose to your trustee all income pay assessed income contributions explain how money was spent reveal all assets and creditors. You may request a review of an objection. More information is available in the pamphlet: Can I Appeal? Review and appeal of trustee and administrator decisions Where to contact us Telephone 1300 364 785 ITSA website wwwitsa.gov.au ITSA Offices ACT Level 2, NFF House, 14-16 Brisbane Avenue BARTON ACT 2600 Tel: 1300 364 785 Fax: (02) 6270 3608 email: itsa.canberra@itsa.gov.au New South Wales GPO Box 548 SYDNEY NSW 2001 Level 8, 135 King Street SYDNEY NSW 2000 Tel: 1300 364 785 Fax: (02) 8233 7891 email: itsa.sydney@itsa.gov.au Queensland Brisbane PO Box 10443 Adelaide Street BRISBANE QLD 4001 Level 16, 340 Adelaide Street BRISBANE OLD 4000 Tel: 1300 364 785 Fax: (07) 3360 5466 email: itsa.brisbane@itsa.gov.au Townsville PO Box 1527 TOWNSVILLE QLD 4810 Level 1, National Australia Bank Building 315 Ross River Road AITKENVALE OLD 4814 Tel: 1300 364 785 Fax: (07) 4727 0500 email: itsa.townsviIIe-0itsa.gov.au South Australia/Northern Territory GPO Box 2604 ADELAIDE SA 5001 Level 18, Grenfell Centre 25 Grenfell Street ADELAIDE SA 5000 Tel: 1300 364 785 Fax: (08) 8112 4305 email: itsa.adelaide@itsa.gov.au Tasmania GPO Box 850 HOBART TAS 7001 Level 4, ANZ Centre 22-26 Elizabeth Street HOBART TAS 7000 Tel: 1300 364 785 Fax: (03) 6221 7700 email: itsa.hobart@itsa.gov.au Victoria Level 10, Melbourne Central 360 Elizabeth Street MELBOURNE VIC 3000 Tel: 1300 364 785 Fax: (03) 9272 4900 email: itsa.melbourne@itsa.gov.au Western Australia GPO Box H536 PERTH WA 6841 Level 12, Durack Centre 263 Adelaide Terrace PERTH WA 6000 Tel: 1300 364 785 Fax: (08) 9268 1298 email: itsa.perth@itsa.gov.au More information pamphlets are available. See the website or contact ITSA for a complete list.