Bankruptcy Australia, So what is the Deal with Debts?
Which Debts are erased if I go Bankrupt? The easy answer is that when it involves Bankruptcy most debts are wiped, and I have provided a chart below for you to look at. But, simply put some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) alongside any debts arising from uninsured Motor-vehicle claims and educational debts including HECS or FEE-HELP. These debts are not erased when you file for bankruptcy. What about Secured Debts? A secured debt is a vehicle loan or a home loan; it is a debt that has some genuine security linked to it. So for example if you buy a new car for $40,000 dollars the security for that car is the actual car itself. So, can my secured debts be erased if I file for bankruptcy? Yes. If you have a car loan for $40,000 you can have that debt removed if you simply return the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts mi
