WA Will Bankruptcy Clear Court Judgment?

Get Instant Legal Answers - Free AI Legal Help
Join thousands of Australians each month using LawConnect’s AI assistant for fast, personalised legal information. No waiting. No cost. Start now.
Ask Your Question 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.