Queensland Bankruptcy Laws
- Filing for bankruptcy is often seen as a last resort for debt problems.Paying Bills image by ne_fall_photos from Fotolia.com
Bankruptcy occurs when indebted people who cannot pay what they owe make it legally known that they are unable to do so. In Australia, bankruptcy proceedings can be initiated by the debtor or creditor in line with the Bankruptcy Act of 1966. According to an article in "Gold Coast," 2009 saw the number of people being declared bankrupt in Queensland rise by 19.4 percent to a total of 1,690. This is the second largest number of bankruptcies in any of the Australian states. Those considering bankruptcy can streamline the process by familiarizing themselves with the relevant bankruptcy law. - To start bankruptcy proceedings, a person must file for bankruptcy and produce a statement of affairs to the government's Insolvency and Trustee Service Australia. The statement of affairs is a list describing in detail what the debtor owes and what they own in terms of assets. In Queensland, bankruptcy does not officially start until this statement is provided.
- Superannuation is a form of Australian retirement program that requires employers and employees to pay monies into a superannuation fund for release on retirement or another specified time. Prior to 2007, money put into superannuation could not be used to pay off creditors if a person became bankrupt. According to the Queensland-based insolvency firm, Worrells, a change in legislation now means that any "unreasonable" amount of cash that is put into superannuation before someone files for bankruptcy can now be recovered.
- Under the Bankruptcy Act 1966, certain items are protected from being claimed by the trustee as they seek to pay creditors. These items include family necessities; a car with a value under $6,000, and tools worth up to $3,000 if the debtor is a tradesperson. As the Bankruptcy Act is a Commonwealth Act, the same laws are as applicable in Queensland as they are in any other of the Australian States.
