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Bankruptcy law in Adelaide, Australia is designed to alleviate extreme financial hardship for both individuals and businesses unable to pay their debts. When an individual or a business entity declares bankruptcy, their assets are liquidated and the money is used to pay off debts to their creditors. Bankruptcy is a serious financial decision and its implications can last up to several years, affecting your financial security, reputation, and credit ratings. Hiring a professional lawyer can help you navigate through the complex process, alternative options, and potential consequences.
There are numerous circumstances where you may require legal assistance with bankruptcy. These can include uncontrollable debts, contractual disputes, risk of foreclosure on property, and severe credit card debt. Lawyers specialized in bankruptcy can provide valuable advice to protect your interests, guide you through the legal process, help you understand the financial implications, and potentially propose alternatives to bankruptcy.
In Adelaide, Australia, Bankruptcy is governed by the Bankruptcy Act 1966 (Cth). Under this law, an individual can be declared bankrupt voluntarily or by the court order. The state of bankruptcy generally lasts for three years, but it can be extended in some cases. During this period, a Trustee (appointed by the court or selected by the individual) takes control over most of the bankrupt's assets and income to pay debts. Certain assets, wage amounts, and pensions are protected under this Act. Bankrupt individuals are also subject to various restrictions including obtaining credit, travelling overseas, or managing a company.
1. Can I qualify for bankruptcy?
In Adelaide, any individual can qualify for bankruptcy if they are insolvent, unable to pay their debts when they are due.
2. Will I lose all my possessions if I declare bankruptcy?
Not necessarily, certain assets are protected under the Bankruptcy Act. This generally includes household items, tools of trade up to a certain value, vehicles up to a set amount, and most pensions.
3. How long does bankruptcy last?
Generally, bankruptcy lasts for three years. However, this period can be extended in certain circumstances.
4. Can bankruptcy erase all my debts?
No, not all debts. Certain debts, such as child support, court fines, HECS & HELP debts, and debts incurred after the date of bankruptcy are not erased.
5. Can I travel overseas while bankrupt?
You need to obtain permission from your trustee before you can travel overseas.
The Australian Financial Security Authority (AFSA) provides comprehensive information about bankruptcy. If you are facing financial difficulty, the National Debt Helpline provides free financial counselling. Community legal centres also offer free legal advice. Legal Aid South Australia can provide assistance for low-income individuals.
If you are considering bankruptcy, it is crucial to seek professional legal advice. This potentially involves contacting a lawyer specializing in bankruptcy, setting up an initial consultation to discuss your situation, and reviewing available options. Also, consider seeking financial counselling from a reputable organization or professional to explore potential alternatives to bankruptcy.
