WA Will Bankruptcy Clear Court Judgment?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

PA25

Active Member
31 May 2016
7
1
34
Could someone please let me know if bankruptcy will clear a court judgement debt and halt property seizure proceedings?

This debt belongs to my ex but, unfortunately, has my name on it.
 
S

Sophea

Guest
It depends what sort of court judgement it is - if it's just a stock standard judgement debt arising from a contract then yes.

However, if its one of the following types of debts - it will not be "cleared" by bankruptcy:
  • debts arising from court fines or breaching bonds
  • debts incurred by means of fraud or fraudulent breach of trust
  • child support/maintenance debts
  • Centrelink overpayments incurred as a result of actual fraud
  • an amount payable under a proceeds of crime law
And yes, after bankruptcy unsecured creditors (those who don't have any of your assets securing the debt - such as a house to a mortgage) cannot enforce a remedy against the bankrupt. They can't take fresh steps in proceedings wihtout permission of the court and any issuing of summons and garnishes must be halted.