Your home is often much more than just a property — it is your safe place, your memories, and your sense of security. It’s completely understandable to worry about what may happen to your house if you are considering Bankruptcy.

The good news is that Bankruptcy does not automatically mean losing your home. Depending on your circumstances, there may be options available to help you keep it. Understanding how Bankruptcy works and getting advice early can make a significant difference, so be sure to involve us in this process.

The first step is to work out how much “Equity” there is in your property.

What is equity?

Equity is the difference between what your property is worth and how much you still owe on it. For example, if your property is worth $500,000 and your mortgage balance is $200,000, then you have $300,000 in equity. This represents the portion of the property that you own.

Whether you own the property yourself or with someone else does not necessarily change the options available to you, however it does change how much equity belongs to you personally. For example, if a property is owned equally by two people and there is $300,000 in equity, then each owner’s share would generally be $150,000.

Once you understand how much equity exists and what portion belongs to you, you can start looking at the possible options.

Option 1:

If you have NO EQUITY in your property, then in many situations the trustee may have no reason to pursue a sale of the property. If your lender is happy for you to continue your mortgage repayments, you may be able to keep your home. In many cases this can be possible provided repayments remain manageable.

Option 2:

If you have a SMALL AMOUNT OF EQUITY in your home (commonly somewhere between $10k and $50k), there may be options available to work with the trustee to retain the property and arrange payment of that equity over time. This amount may then be distributed to creditors. The process can sometimes become complex, but we can help guide you through it.

Option 3:

If you have a LARGER AMOUNT OF EQUITY, the process may require more planning and consideration — however this does not mean you are out of options. Every situation is different. Contact us with the details of your property and circumstances and we can work through the available pathways together and help you understand the best next step.

A lot of people worry that Bankruptcy means they will be banned from travelling overseas. That is not usually the case.

If you are bankrupt and want to travel overseas, you will generally need to complete a form and ask your Trustee for permission before you leave Australia. In many cases, this is a straightforward process. In our experience, clients who are open, cooperative, and up to date with their obligations are usually able to travel.

There are some situations where a trustee may not approve overseas travel. These can include:

• You have not cooperated with the Bankruptcy process.
• You have not fully disclosed your financial position to the Trustee.
• You have overdue payments or unresolved obligations with your trustee.
• There are genuine concerns that you may not return to Australia.

Permission is ultimately at the discretion of the trustee.

So yes, overseas travel may still be possible while bankrupt. You simply need to request permission before you go. If you are planning to travel, we can help you understand the process and assist with the application to leave Australia.

One of the most common questions we are asked is “What are the consequences of Bankruptcy?” The honest answer is that there is no one-size-fits-all response because every person’s situation is different.

• Your employment type
• Your income
• Whether you own property
• The assets you own
• Whether you are a company director or sole trader
• Whether you are going through separation or divorce
• Whether court action or judgments exist
• Whether you have dependent children
• Whether you expect to receive an inheritance

…and many other factors.

That’s why understanding your own circumstances before making any decision is so important.

That said, there are a few things that commonly apply to many people during Bankruptcy:

• You generally cannot act as a Company Director during the Bankruptcy period. However, this does not automatically prevent you from working or operating as a sole trader.
• Some obligations such as HECS/HELP debt, Child Support and certain fines are generally not included in Bankruptcy.
• If you wish to travel overseas, permission from your trustee is normally required.

Many people are surprised to learn that Bankruptcy does not automatically mean losing everything or putting life completely on hold. Understanding how the rules apply to your specific circumstances can make a significant difference to the outcome.

We recommend completing the FREE Bankruptcy Evaluation so we can help identify any factors that may affect your situation and explain your options clearly. This advice is obligation free and may help you make a more informed decision.

You can become bankrupt in two main ways.

Forced Bankruptcy:

This can happen when a creditor takes legal action through the courts. If a judgment is made against you and the debt remains unpaid, the creditor may apply to have you made bankrupt.

This process can feel stressful and overwhelming. It may involve court documents, legal steps, financial information, and communication with creditors or lawyers. If this has already started, please contact us as early as possible so we can help you understand what is happening and what your options may be.

Voluntary Bankruptcy:

This is when you choose to take control of the situation and apply for Bankruptcy yourself.

While voluntary Bankruptcy can be a more proactive option, the application process can still feel complicated if you are doing it alone. There are forms to complete, documents to gather, and important questions to answer correctly.

To apply for voluntary Bankruptcy, you generally need to:

• Understand how to answer each question on the Bankruptcy application.
• Understand how your answers may affect your situation.
• Obtain accurate valuations for assets such as your house and vehicle.
• Create a Government Personal Insolvency Portal.
• Complete a detailed application with personal and financial information.
• Provide supporting documents where required.
• Make sure all information is accurate and up to date.
• Respond to any questions from the trustee before approval.
• Provide extra information if requested.
• Continue communicating with your trustee once your Bankruptcy is approved.

The good news is that you do not need to manage this process by yourself. We can guide you through each step, help prepare the application properly, and make the process feel much clearer and more manageable.

This is a really common question. Many people start looking at their options and quickly realise there is more than one pathway available. One option they may come across is a Personal Insolvency Agreement, often called a PIA.

Personal Insolvency Agreements can include Part IX agreements (Part Nine) and Part X agreements (Part Ten). These are formal debt agreements designed for specific situations.

In simple terms, these agreements may allow your debts and interest to be paused while you make one regular payment to a trustee or administrator. That trustee or administrator then distributes the money to your creditors.

It is important to understand that these agreements do not usually wipe your debts straight away. In most cases, you are still required to repay an agreed amount over time.

For some people, a Part IX or Part X agreement can be a suitable option. For others, it may not provide the fresh start they were hoping for. This is why it is important to get clear advice before making a decision.

We will only recommend a Personal Insolvency Agreement if we genuinely believe it is the best option for your circumstances. In many cases, Bankruptcy may be simpler, clearer, and more effective — but every situation needs to be looked at properly.

We often speak with people who have already entered into a Personal Insolvency Agreement and later feel unsure, frustrated, or no better off. If that has happened to you, please contact us. We can help you understand where you stand and what options may still be available.

So, can these agreements be a good option? Yes, they can be — but only when they properly suit your situation.

The best next step is to complete the FREE Bankruptcy Evaluation. We can then look at your circumstances and help you understand whether a Part IX, Part X, Bankruptcy, or another option is most appropriate for you.

Personal Insolvency Agreements are not for everyone. The right choice is the one that gives you the clearest, safest path forward.