To apply for bankruptcy, there is no minimum or maximum amount of debt or income, that one should have. In fact, anyone who is unable to pay their debts when they are due, and who has a residential or business connection to Australia, can file for bankruptcy.

Bankruptcy can have several consequences on one’s assets, income, debts, credit rating, employment options, overseas travel plans, etc., and hence, it is advised to determine it’s suitability on a case-to case basis. It is recommended to hire the services of a financial counsellor as he might be able to suggest other solutions, such as debt agreements depending on one’s financial situation.

1. During bankruptcy, one cannot:
   1. Act as a director of a company
   2. Travel overseas without the permission of the Trustee
   3. Avail credit of more than $5,387 without prior disclosure of being bankrupt
   4. Carry out business activities under a different name, without prior disclosure of being bankrupt

Additionally, one is required to allow their trustee to sell their assets, except for those which are legally protected, such as clothes, household furniture, car (if under a prescribed value), etc.

Bankruptcy lasts for a period of 3 years and 1 day, starting from the date of approval of AFSA. It may be extended by the trustee, if he deems fit.

You can apply for annulment of your bankruptcy, if you have discharged all your debts in full before the prior completion of the 3-year period.