Last updated 30 November 2022
Generally speaking bankruptcy lasts for three years.
The steps a trustee will take are to:
- confirm which creditors’ debts should be paid
- sell the bankrupt’s property
- ensure any creditors given priority in the Bankruptcy Act 1966 (Cth) are paid first
- pay the remaining proceeds to creditors with each creditor paid in proportion to their share of the debtor’s total debts.
The AFSA website also has a range of resources including a number of short videos to provide information to clients on key personal insolvency topics such as Unmanageable Debt—Where to find help and Consequences of Bankruptcy.