How to early discharge from bankruptcy

Discussion in 'Debt and Bankruptcy Law Forum' started by Toma, 16 November 2018.

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  1. Toma

    Toma Active Member

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    Hi,
    I am currently bankrupt. It has been 5 months.
    I heard i can apply for early discharge but i dont know how it really works..
    Does anyone have any idea of early discharge of bankruptcy?
    Thanks
     
  2. Scruff

    Scruff Well-Known Member

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    I mentioned that in your other thread. I did some googling and it looks like you can't apply for a straight out early discharge anymore. (My bankruptcy was in the 1990's - apparently the Bankruptcy Act has changed a lot since then.)

    It looks like the closest you can get now is a "Section 73 Composition". If I understand it correctly, this involves paying a lump sum in exchange for the bankruptcy being annulled. Google "bankruptcy section 73" (filter the results to Australia only and last 12 months to get the most up to date info.) There's plenty of law firms that have web pages that explain how it works.

    In regard to the 2017 Bill which proposes to reduce bankruptcy from 3 years to 1 year (which is still before parliament), if passed, it will be retroactive and include current bankrupts, which means that in your case, you will be discharged after 1 year instead of 3 years (or if you have been bankrupt for over one year when the bill is enacted, you would be discharged at that time.) However this will not affect any financial contributions you have to make if you are currently making any. Under the proposed bill, financial contributions will continue for 2 years after discharge (3 years total as it is now, so in that respect, nothing will change.)
     
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