What happens to this type of debt…

Debt comparison table

Please note: The tables below relate to debts that were not incurred by fraud and that existed at the date of your bankruptcy or the date of your debt agreement.

Unsecured debts

If I go bankrupt: If I enter into a debt agreement:
Type of debt (unsecured) Can the creditor continue to demand payment? Will I still have to pay the debt after my bankruptcy ends? Will the debt be included in my debt agreement? Can the creditor continue to demand payment? Will I still have to pay the debt after my debt agreement?
Credit card No No Yes No No
Store card No No Yes No No
Personal loan (unsecured) No No Yes No No
Unsecured business loan No No Yes No No
Trade creditor (unsecured / no retention of title) No No Yes No No
Gas, electricity, phone (including mobile), internet, pay-TV No No, but the supplier may no longer supply you or may require payment of a bond Yes Yes regarding ongoing supply but no regarding the debt covered by your debt agreement No, but the supplier may no longer supply you or may require payment of a bond
Legal fees No No Yes No No
Medical fees No No Yes No No
Accounting fees No No Yes No No
State fines Yes Yes No Yes Yes
Non-court fines Yes Yes No Yes Yes
Court-ordered restitution amounts No No, if the amount was fixed before you became bankrupt Yes, if the amount was fixed before you entered into a debt agreement; no if it was not fixed No, if the amount was fixed before you entered into a debt agreement; yes if it was not fixed No, if the amount was fixed before you entered into a debt agreement; yes if it was not fixed
Pawn shop No No, but you won’t get back the item/s you pawned Yes No No, but you won’t get back the item/s you pawned
Pay day lender No No Yes No No
Taxation No No, but deductions from wages may continue during the term of and after bankruptcy if required by certain statutory orders, such as those issued by the Commissioner of Taxation, as these constitute the recovery of a secured debt Yes No No, but deductions from wages may continue during the term of and after the debt agreement if required by certain statutory orders, such as those issued by the Commissioner of Taxation, as these constitute the recovery of a secured debt
Child support Yes Yes No Yes Yes
Victims of crime* See below* See below* See below* See below* See below*
Centrelink No No, but if Centrelink debts are incurred by fraud then the debt will be repayable after discharge. Yes No, but if Centrelink debts are incurred by fraud then the debt will be repayable after discharge No
Centrelink Families Assistance No, Except where the reconciliation of family assistance payment is carried out after the date of bankruptcy. No, Except where the reconciliation of family assistance payment is carried out after the date of bankruptcy. Yes, Except where the reconciliation of family assistance payment is carried out after the date of debt agreement proposal. No, Except where the reconciliation of family assistance payment is carried out after the date of debt agreement proposal. No, Except where the reconciliation of family assistance payment is carried out after the date of debt agreement proposal.
Outstanding rent where you currently live No No. Your rental agreement or local laws may give the landlord the right to terminate your tenancy agreement and you may have to find another place to live Yes No No. Your rental agreement or local laws may give the landlord the right to terminate your tenancy agreement and you may have to find another place to live
Outstanding rent at a place where you used to live No No Yes No No
Debts relating to property you damaged when you were a tenant No No Yes No No
Overdrawn accounts No No Yes No No
HECS/HELP/SFSS debts Yes Yes No Yes Yes
Liquidated debts / liquidated damages No No Yes No No
Unliquidated debts / unliquidated damages Yes Yes, Except where the debt is incurred by reason of a contract, promise or breach of trust. No, Except where the debt is incurred by reason of a contract, promise or breach of trust. Yes, Except where the debt is incurred by reason of a contract, promise or breach of trust. Yes, Except where the debt is incurred by reason of a contract, promise or breach of trust.
Debts incurred after your date of bankruptcy or date of debt agreement Yes Yes No Yes Yes
Provable debts incurred by fraud No Yes Yes No Yes
  • *Victims of Crime debt information depends on factors such as your state’s laws and when or if the debt was registered.  Contact us for further information.

Secured debts

If I go bankrupt: If I enter into a debt agreement:
Type of debt (secured) Can the creditor continue to demand payment? Will I still have to pay the debt after my bankruptcy ends? Will the debt be included in my debt agreement? Can the creditor continue to demand payment? Will I still have to pay the debt after my debt agreement?
House mortgage Yes No, but it is most likely that either the trustee or mortgagee will sell your house You must disclose the creditor and the creditor can decide whether to participate Yes Yes, if you wish to keep the house
Motor vehicle security Yes No. You may also have to surrender your vehicle if you fall into arrears (& if the vehicle equity is more than the indexed amount). You must disclose the creditor and the creditor can decide whether to participate Yes Yes, if you wish to keep the car
Business loans secured by business assets Yes You will need to pay the debt or the secured creditor may sell the assets You must disclose the creditor and the creditor can decide whether to participate Yes Yes, if you wish to keep the assets
Chattel mortgage Yes You will need to pay the debt or the secured creditor may sell the assets You must disclose the creditor and the creditor can decide whether to participate Yes Yes, if you wish to keep the assets
Council rates Yes You will need to pay the debt or the Council can sell your house to pay the debt No Yes You will need to pay the debt or the Council can sell your house to pay the debt
Water rates Yes You will need to pay the debt or the Council can sell your house to pay the debt No Yes You will need to pay the debt or the Council can sell your house to pay the debt
Debts incurred after your date of bankruptcy or date of debt agreement Yes Yes No Yes Yes
Secured debts incurred by fraud Yes Yes No Yes Yes

This publication is a guide intended to provide general information and is not legal advice.

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