What debts are covered in bankruptcy?
You must disclose all your debts in your Statement of Affairs. Some debts are not provable in bankruptcy such as penalties or fines imposed by a court, HECS-HELP debts, debts you incur after the date of bankruptcy. When you are discharged from bankruptcy you will be released from your provable debts, however there are certain debts which you are not released from including maintenance, child support and debts incurred by fraud. Providers of essential services to your home (electricity, gas, water, telephone) may disconnect the service if you do not pay your current account and may ask for a security deposit or bond to continue the service. Unsecured creditors: Generally do not have the right to repossess goods purchased. Any legal action being taken by an unsecured creditor (summons, garnishee, recovery action by a sheriff or bailiff) must stop. Once bankrupt you do not have to continue paying unsecured creditors (exceptions) Secured creditors: A secured debt is where a creditor has a
