Bankruptcy Rules

Once in bankruptcy, earn what you like but over a certain amount you will have to pay contributions.

Insolvency Solutions

As Featured In

Lowest Cost Company Liquidation

Are You Facing Bankruptcy?

If you are having trouble paying your personal debts, and if you are constantly being harassed by creditors, you should seek professional advice from an accountant, lawyer or a qualified insolvency practitioner.

The Insolvency Experts can Help You:

Assess Your Financial Situation

Develop a Plan Of Action

Understand Your Options

Compulsory Contribution Tables.

The Bankruptcy Act contains a number of thresholds and limits that are regularly indexed. The tables below have just been released on 20 September 2019. In essence, a Bankrupt person can keep a car up to the value of $8,000 and tools used to earn income of $3,800.

Do You Need Help or Want to Talk?

Call 1300 767 525 to speak with us, or fill in your details below and one of our expert advisors will get back to you within 30 minutes!

FREE Expert Advice 24/71300 767 525
Protected Assets and Limits Limit Note Warning
Motor Vehicles $8,000 A bankrupt may keep a vehicle up to this limit. This amount refers to the equity in a vehicle subject to finance.
Tools $3,8000 A bankrupt may keep tools used to earn an income up to this limit. Failure to disclose status as a bankruptcy may result in criminal charges.
Credit Limit $5,812 A bankrupt or debt agreement debtor must disclose their bankrupt or debtor status when seeking any credit or finance above this limit.
Bankruptcy Notice $5,000 This is the minimum amount upon which a bankruptcy notice can be issued. Below this, a creditor cannot apply for bankruptcy of a debtor. Not an indexed amount.

Liquidation need not be a traumatic experience. If you are considering liquidation, talk to us. We’ll provide honest and direct advice and information about your situation at no cost and without obligation.

Income Contributions

During the period of bankruptcy (normally 3 years until automatic discharge (unless release from bankruptcy is objected to by the Trustee)) there are no limits on the amount a bankrupt person may earn.

However, once a bankrupt person earns more than the statutory amounts, they are required to pay Income Contributions to their Bankrupt Estate. These payments only continue during the bankruptcy period.

Income Contributions Limit
Below these amounts, based on number of dependents, a bankrupt will not have to pay income contributions. Above these amounts, contributions must be paid.
Number of Dependents (after tax amounts)
0 $58,331.00
1 $68,830.58
2 $74,080.37
3 $76,996.92
4 $78,163.54
Over 4 $79,330.16
Amounts are updated 20 March and 20 September each year

Part IX Debt Agreements & Part X Personal Insolvency Agreements

If your debts and income are below the amounts detailed, you may be eligible to undertake a Part IX Debt Agreement. Above these amounts, a Part X Personal Insolvency Agreement may be appropriate.

Eligibility for Part IX Debt Agreement or Part X Personal Insolvency Agreement Limit
Unsecured Debts
If unsecured debts are below this limit, a Debt Agreement can be proposed. Above, the limit a Personal Insolvency Agreement applies.
Unsecured Assets
If divisible assets are below this limit, a Debt Agreement can be proposed. Above the limit, a Personal Insolvency Agreement applies.
Income Level
If income is below this level, a Debt Agreement can be proposed. Above the limit, a Personal Insolvency Agreement applies.
$87,496.50 (net of tax)
Amounts are updated 20 March and 20 September each year

Free Consultation

Call 1300 767 525 anytime or fill in your details below and one of our expert advisers will get back to you within 30 minutes!

Get Our Free Corporate Insolvency & Liquidation Guide

Lowest Cost Company Liquidation

Speak Directly to a ASIC Licenced Expert, 24/7 not a call centre salesperson!

Our Approach To Helping Your Financial Problems

The Insolvency Experts are ASIC licenced insolvency specialists who will help you FREE of charge and without obligation, 24 hours a day.

All you need to do is call to obtain answers, options and solutions to the most difficult financial situations.

The Insolvency Experts will tell you exactly what you need to know – not what you may want to hear. By doing this, we empower you, through the provision of correct information, to make the best and most informed decisions about your finances in difficult circumstances.

The Insolvency Experts who you will speak with are licenced professionals with over 30 years specialist insolvency experience. We have helped thousands of people just like you in the most dire financial situations.

We have a proven track record of honesty and trustworthiness and seek to maintain the highest ethical and moral standards while providing you with sound, professional advice.

Call – an ASIC licenced expert will assess your financial situation and provide expert tailored advice.

Answers – will be given to every question. There is no time limit on these consultations.

Options – will be canvassed and explained so you can make an informed decision that is best for you and your family.

Solutions – including both informal and formal solutions. These may include Company liquidation or Administration.

Our Story & Key Credentials

We are a specialist insolvency practice providing free 24 hour advice to company directors & individuals throughout all states & territories of Australia.

Our highly experienced & trusted professionals are qualified, licensed & regulated by the ASIC.

Established in 2006, we were the original, low cost liquidation provider and have since helped thousands of directors and hundreds of companies in a wide array of industries.

24 hour service

24/7 Helpline
100% of Calls Answered by
Qualified Expert – not a call centre

ASIC License 296215
since 2006

Australia Wide Licence

Operating in
All States of Australia

Google Rating

30+ Years Experience

24 hour service

1,500+ Directors Assisted

85% of liquidations effectively
completed within 4 – 6 months

Google Rating

Low Cost Liquidation Expert

Rated 5 out of 5 on
Google Reviews