If you’re considering bankruptcy, understand
that, while it can offer you a fresh start, it does come with some serious consequences. To start with, you will normally be bankrupt
for 3yrs & 1 day and your name will appear permanently on the “National Personal Insolvency
Index” or NPII. This is an online record that anyone can check,
including banks, landlords and employers. You might lose some of your assets and you
could find it tough to borrow money, renew or obtain insurance. You may also have to pay a bond before connecting
gas or electricity. You won’t be able to travel overseas without
permission. You might even have to surrender your passport. Your income, employment or business might
be affected and if your income goes past a certain point, some of that could go to the
people you owe money to. Bankruptcy conditions are legally binding,
so if you don’t stick to them, you could be in even worse trouble. The AFSA website has a lot more information
about bankruptcy and its consequences. Simply go to afsa.gov.au and search “Consequences
of Personal Insolvency”. Bankruptcy is serious. Understanding how it works and what to expect
will help you decide if it’s the right move for you.