VIC Possible to File for Bankruptcy?

[Joybelle48]

Hello,

I only joined a few minutes ago so hope I get this right. If a person hasn't paid tax for maybe 20 years and wouldn't really know how much they have earned doing contracting, and at 42, want to put their hand up and confess to the ATO, could they file for bankruptcy and start afresh?

Thank you

 

[Sophea]

Technically yes, but don't underestimate what is involved in being bankrupt and thereafter being an undischarged bankrupt. The period of bankruptcy is usually 3 years and one day from the date a statement of affairs is filed however it could be extended by your trustee.

Check this out:
Consequences of bankruptcy — Australian Financial Security Authority

 

[Joybelle48]

Technically yes, but don't underestimate what is involved in being bankrupt and thereafter being an undischarged bankrupt. The period of bankruptcy is usually 3 years and one day from the date a statement of affairs is filed however it could be extended by your trustee.

Check this out:
Consequences of bankruptcy — Australian Financial Security Authority

 

[Joybelle48]

Thank you Sophea..appreciate your help..fortunately it is not for me.

The person I am enquiring for doesn't have any assets just some tools and an older model car....which seems he could keep. His wife has a house which she paid the deposit on from the sale of a property she had long before meeting him. He is concerned that could be affected. People get themselves into predicaments and don't know where to turn.

Do you think he could go to jail for not paying taxes? That concerns him. I know this is totally wrong most of us pay our taxes and those who don't reap the benefits such as hospitals etc.
Thanks again☺