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Bankruptcy Services Perth

Freedom from personal debt.

A Fresh Start Through a Legal and Structured Process

Bankruptcy is a formal insolvency solution available to individuals who are unable to pay their debts. It provides immediate relief from creditor pressure and allows you to reset financially under the protection of the Bankruptcy Act 1966.

At Equinox Restructuring & Insolvency, we help individuals understand the consequences of bankruptcy, prepare for the process, and regain control of their financial lives with dignity and support.

What Is Bankruptcy?

Bankruptcy is a legal declaration that you are unable to pay your debts. It can be entered into voluntarily (a debtor’s petition) or initiated by a creditor through a court process (a creditor’s petition). Once declared bankrupt, a registered trustee is appointed to manage your estate.
Key features of bankruptcy:
  • Most unsecured debts are wiped
  • It applies to individuals (you will not need to consider personal vs business bankruptcy)
  • You gain immediate protection from legal and enforcement action
  • A trustee manages your financial affairs during the bankruptcy period
  • Bankruptcy usually lasts for 3 years and 1 day

When Should You Consider Bankruptcy?

Bankruptcy may be the best option if you:

What Happens During Bankruptcy?

Once you become bankrupt:

  • A trustee is appointed to manage your bankruptcy
  • Your divisible assets may be sold to repay creditors
  • You may be required to make income contributions if you earn over a set threshold
  • You are released from most unsecured debts
  • You must meet certain legal obligations during the bankruptcy
We can act as your bankruptcy trustee or help you lodge the application and prepare for what lies ahead.

What Debts Are Included in Bankruptcy?

Bankruptcy covers most unsecured debts, including:

Credit cards

Personal loans

ATO debts

Overdrafts

Utility and medical bills

Debts not covered include:

Court fines

Child support

HECS/HELP debts (in most cases)

Some Centrelink overpayments

How Bankruptcy Affects...

Your Home: If you have equity in a property, it may need to be sold. If there’s no equity, you may be able to continue living there.

Your Car: You may be allowed to keep a vehicle up to a set value (indexed annually). Higher value vehicles may be sold.

Your Income: If you earn above a certain threshold, you may need to make payments to your estate.

Your Business: Sole traders can generally continue working, though restrictions apply around trading names and credit terms.

Your Credit File: Bankruptcy remains on your credit report for 5 years or longer, but it also stops further creditor defaults.

Your Travel: You must seek written permission from your trustee to travel overseas during the bankruptcy period.

Why Choose Equinox Restructuring & Insolvency?

We are experienced, registered professionals committed to:
  • Clear, compassionate support
  • Helping you understand your rights and responsibilities in all types of bankruptcies
  • Protecting your dignity during difficult times
  • Acting quickly to reduce stress and uncertainty

Whether you need advice or representation, we’re here to help.

Learn More

Get in Touch and Take the First Step Toward Financial Relief

If you are considering bankruptcy or have been served with a creditor’s petition, don’t delay. Early advice makes all the difference.

Click here to arrange a cost and obligation free consultation with an insolvency professional

Click here to free consultation.
FAQ’s

Frequently Asked Questions

Will I lose everything in bankruptcy?

No. You can usually keep essential household items, some personal effects and tools of trade up to a set value. Your trustee will assess all assets.

The standard term is 3 years and 1 day from the date your application is accepted. It can be extended for non-compliance.
Yes. You can lodge a debtor’s petition with AFSA, or appoint a registered trustee to handle the process.
Not directly. Bankruptcy applies only to you, unless debts or assets are jointly held.
Yes. Your superannuation is generally protected, but any withdrawals may be treated differently.
Yes. Most people continue working during bankruptcy. You may need to make income contributions above the set threshold.
No. Once you are declared bankrupt, most legal and collection action must stop immediately.
You are discharged from most debts and can begin rebuilding your financial future.
Yes. You may apply to annul your bankruptcy through a lump sum payment, agreement with creditors or court application.
Yes. We also recommend speaking with us first as we can explain the legal, financial and practical impacts in plain terms.
It depends on the value of your assets and any equity you hold in them. In some circumstances you may be able to retain your car or home, while in others the trustee may need to realise those assets for the benefit of creditors.
Yes. Bankruptcy is recorded on your credit report and may affect your ability to obtain loans, credit cards or other forms of finance for several years.
Not necessarily. While you can generally continue to operate a bank account during bankruptcy, your financial affairs will be subject to review by the trustee.
As a sole trader, your business and personal finances are not legally separate, so bankruptcy may affect both. Depending on your circumstances, you may still be able to continue trading, subject to certain restrictions and disclosure requirements.
No. Alternatives such as debt negotiation, debt agreements, personal insolvency agreements or other restructuring options may be available depending on your financial circumstances. Seeking professional advice can help determine the most appropriate path forward.

There is nuance to the personal vs business bankruptcy debate.

Bankruptcy applies to individuals, including sole traders, who are unable to pay their debts. Companies cannot become bankrupt; instead, insolvent companies may enter processes such as liquidation, voluntary administration or restructuring.

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