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NT ASIC - Can Partner's Bankruptcy Remain Undischarged for Life?

Discussion in 'Debt and Bankruptcy Law Forum' started by tanfyfe, 27 September 2015.

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  1. tanfyfe

    tanfyfe Member

    27 September 2015
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    Hi there,

    I tried to find something in one of the other threads that would help answer my question without the need for me to post one of my own, but I couldn't find anything that I found similar enough.

    My partner entered into a voluntary bankruptcy about 3 or 4 years ago. Over the past 12months there has been several variations to his conditions, which I understand. 3 weeks ago, he was contacted by ASIC and told that at the end of September he would be able to complete his bankruptcy with a final payment of $9000, as there was an error made with his case through their calculations not his. He was not able to make this final payment amount, and was informed that if he could pay $5000 within 2 days, they would extend him for 2months and he would then be able to finish his bankruptcy period upon final payment of the remaining monies. I had the first required amount in my savings, and so forwarded this to him, which was in turn forwarded to ASIC.

    The following week, he is then informed that they have made another error, and that he is required to pay $45000, which clearly he does not have. He was then informed that they will take the money over the next 12 months. He was then informed that they will make a petition for him to be subject to the rules of the bankruptcy for the rest of his life, and that they will continue to take as they currently do.

    What I guess I want to know is, whilst I was aware that the actual listing of his bankruptcy was indefinite, I thought that eventually he would become a discharged bankrupt and after 2 years he would be able to start his life again, can they maintain his bankruptcy undischarged for the remainder of his life?
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    Hi tanfyfe,

    I have never heard of anyone being bankrupt for life, but I'm not 100% on what the act says.

    The AFSA website states that generally a bankrupt is discharged three years and one day after filing the petition and statement of affairs, but that your bankruptcy can be extended to five or eight years, if your trustee lodges an objection to your discharge. Here is a link to their info on objections. Objections — Australian Financial Security Authority

    I would call the AFSA and ask them whether what is happening is correct.

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