Bankruptcy is the process whereby you can be released from most of your debts. This process can be done either voluntarily (Debtor’s Petition) or by a creditor (someone you owe money to) who instigates proceedings against you through court processes (Creditor’s Petition).
A Bankruptcy Trustee is appointed to administer your bankruptcy, this can be a private Registered Trustee or the Official Trustee (AFSA). You will have certain obligations whilst bankrupt being:
The trustee must be provided with the required statutory form(s) outlining your income, assets, liabilities and other financial information
The trustee must be provided with details of any material change in your circumstances during the bankruptcy.
The trustee can sell certain types of assets to help repay your creditors
You may be required to make compulsory contributions from your income, if your income exceeds a certain amount
You will need to respond to queries / requests for information by your trustee