Having been through bankruptcy myself, let me tell you, bankruptcy brings peace of mind, it will cancel your debt, the debt collectors' calls will stop, you'll be able to start again, and, you'll soon sleep well again.

Bankruptcy may save your house too.  I've written more about this on www.bankruptcyandhouses.com.au. If this is one of your concerns, left click on the link and go there now and then come back. 

Hello, my name is Fred Appleton, I'm a former Chartered Accountant and I've been through bankruptcy myself when a number of years ago I tried to diversify my business interests. The wheels fell off and it knocked me over.

For more than 15 years now, I have just specialised in supplying information on bankruptcy, and later on a Debt Agreement Proposal, all over Australia, and overseas too, but only from the point of view of the person owing the money, you.  In that time I've helped thousands of people, just like us, to sort out their debt problems and get on with their lives.

This section of the site is mainly about bankruptcy, I cover a Debt Agreement Proposal in Information Note 3. If you are wondering whether a Debt Agreement Proposal or a bankruptcy would be best for you, flick over to the menu on the right hand side of the website, beside my photo, and click the 4th item down, which is about debt agreements.  Don't kid yourself though, read it and do the worksheets and see what you think. Mostly you’ll find that you can’t afford a Debt Agreement, mostly they’ll keep you broke.

Apart from the government's webpage, this is the longest running bankruptcy service on the internet in Australia.

Now for a bit more about bankruptcy, because this website is all about you getting out of debt, getting back on your feet and so getting on with your life.

Without going to court, or being in the newspapers, bankruptcy quickly enables ordinary people to get out of debt, so you personally won't owe anything more on your credit cards, GST and tax, unsecured personal loans, and things like that. 

Bankruptcy quickly gets rid of the debt collectors' telephone calls and harassment.  Your smile will return and you'll be easier to live with.  You'll breathe easier, your debt won't always be on your mind. That was my experience anyway.

My website www.bankruptcyandhouses.com.au will introduce you to Alan Nicholls, a bankruptcy trustee who I think is the leader in the area of bankruptcy and houses.  Chances are he can help you to save your house. Steve will discuss the issues with you, and if appropriate arrange for Alan to call you or take a call from you.

Here's some good news for everyone, bankruptcy won't send you broke either, as even without dependants you'll always keep at least the first $917.18 of your pay that goes into your bank account each week (that's net, its after tax and after child support). Bankruptcy tries to help you to get back on your feet and on with your life.  it’s not the so called last resort.  That sort of talk is just garbage, but you’ll hear it from people who don’t know any better, or from people who want to sell you something else.

The minimum $917.18 per week is the same as $1835.12 per fortnight or $3974.44 per month.  In bankruptcy they're called Threshhold Amounts.  If you earn more, you get to keep 50% of the extra amount too, ie, 50% of the profit. 

You'll be out of debt so you'll be able to think about saving the deposit for something worthwhile further down the track. There’s a couple of debts that bankruptcy won’t cancel, like Centrelink, child support, HECS and a court imposed fine, but I cover them shortly.

The $917.18 figure increases if you've got dependants.  With 1 dependant it becomes $1,082.27, with 2 it becomes $1164.81, with 3 it becomes $1210.67 with 4 it becomes $1217.99, and over 4 it becomes $1247.36. 

These amounts are always yours, anything over that you split 50/50 with your bankruptcy during the 3 year term of your bankruptcy. 

In reality, that means that as a bankrupt you can earn as much as you like during the 3 year term of your bankruptcy.  There's nothing stopping you. Go out and make a "$$$$million" or whatever that is to you, but save it, don't buy any big assets with it, in bankruptcy terms that would be an after acquired asset, and your bankruptcy trustee could take it and sell it. For 3 years, keep it in the bank

Don't worry about the 50% payable to your bankruptcy trustee.  If you're in that income bracket then congratulate yourself, being debt free you'll be well on the way to getting back on your feet and on with your life.

I've seen a bankruptcy website say that there are restrictions on how much a bankrupt can earn.  That's garbage, there are no restrictions on what income you can earn, don't let bankruptcy slow you down if you've got it in you to get going again. 

That particular website, which I thought was trying to put bankrupts down a bit, was really trying to get you to become involved in what is called a Debt Agreement Proposal.  Lots of them do.  That's probably because there are good profits to be made by the promoters and administrators if you do so, as you keep paying them for years and years and years, money that as a bankrupt you could be saving. 

I don't think that debt agreements are working the way that it was intended, so be careful or you might end up making somebody else rich whilst number 1, you, stays poor and miserable.

You'll read about Debt Agreement Proposals in Bankruptcy Information Note 3 in this website.  I've got some worksheets there which, if you do them, can help you see whether you can afford to be in a Debt Agreement or not, year in and year out, for 3, 5 or 7 years, or whatever.   

Bankrupts rarely lose their cars because they've gone bankrupt.  I've written a lot more about this in Bankruptcy Information Note 2, so I encourage you to go there and read it.  If it'll make you feel better you'll see that as a bankrupt, you should be able to keep your car if you want to. Chat to Steve about this.

In all of the years that I've been involved in consulting about bankruptcy, in over thousands and thousands and thousands of people, I've only known 4 of them to lose their cars as a result of going bankrupt.  Honestly, if you want to keep your car, and can afford to keep it, then invariably you won't lose it by going bankrupt. 

In reality, for bankruptcy purposes, cars are rarely worth enough (wholesale) for a bankruptcy trustee to legally be able to claim them.

Go to  Bankruptcy Information Note 2 and read all about cars in bankruptcy.  Having no other debt to pay off, or a lot lot less debt, helps you to be able to afford to keep your car.

Go back to my photo, at the right in the next column you’ll see Menu, and below that links to several other pages.  Click the fifth one down about Part 9 Debt Agreement Proposals.  Read it, do the worksheets, it’ll be an eye opener.

Contrary to what some people might tell you, bankruptcy does not prevent you from travelling overseas whilst bankrupt. you just have to apply to your bankruptcy trustee for permission to go.  You'll get it, but there are some forms to fill in and in a few cases some hoops to jump through, but overwhelmingly you'll get the permission. 

You'll also read more about this shortly.

With bankruptcy, as far as you are concerned your credit card debt and personal loan debt and tax debt etc get cancelled, unless it's proved that there's fraud involved.  To my mind fraud is fraud, ie, the intent was never there to pay back the money spent.  That clearly is not the case with the overwhelming majority of people who email and ring me.  I don't know when I last thought that I was dealing with a crook. 

Time and time again I'm told that we've really tried so hard to pay our debts, and often have got as much relief as is on offer, but at the end of the day it hasn't helped, we just can't do it anymore.  If that's you, it's a common scenario.  You don't have to live in debt, life's meant to be better than that. You’re meant to smile and whistle and sing, when did you last do that?

The debt collectors can't send you bankrupt if you owe your creditor less than $5,000.   However, fees and charges and penalties might push your debt past that amount, but the debt collector is supposed to provide you with a full breakup of the amount owing. 

For any debt though, whether it's over or under $5,000, the debt collector can take you to court and get what is called a Judgement against you, and then they can come to your home and repossess certain goods and sell them, and also go to your employer and garnishee your wages, ie, legally force your employer to pay them some of your wages.  I mention more on this later.  Bankruptcy stops this sort of thing happening. If you’ve had court papers served on you, don’t stuff around, ring or email me or Steve now, otherwise you’ll lose some of your wages quick smart.  Your boss could be peeved off too because the garnishee on your wages means that he’ll have to do extra work. 

If you choose to go bankrupt using one of my services, then overwhelmingly, in about a week or so, you'll virtually be debt free.  Quite often you'll be completely and absolutely debt free. You can start again.

Bankruptcy really does give you the chance to start again, to get back on your feet, and so you'll be able to get on with your life.

Depending on the sort of service that is most appropriate for you, if you ask us to prepare your bankruptcy forms and paperwork for you then our fees range from $330 for our Do-it-yourself service, to $660 if we do the lot for you. There are also discounts if both husband and wife go bankrupt using the $660 service.

If it's a "Save the House" matter (see www.bankruptcyandhouses.com.au) we charge a flat $2,200, whether it entails one joint owner going bankrupt, or both.  In other words, the one $2,200 can cover two bankruptcies.

You can also pay by instalments if you wish.

If you're already in a debt agreement and now find it unaffordable and you want out, then that's easy. If you don't make any payments for 6 months then by law the debt agreement is automatically cancelled.  The debt agreement company can't make you pay it. I notice that in my Westpac account on the internet that there is a facility for me to be able to cancel a periodic payment.  I suppose other banks have a similar facility in their internet banking websites

If you want to cancel an existing debt agreement quicker than waiting the six months, then simply WRITE to your Debt Agreement Administrator and ask that the debt agreement be cancelled. They might kick and scream but they can’t make you continue paying them. You can't be refused. The debt agreement cancellation process will take place. 

If you choose to, once the debt agreement is cancelled you can then go bankrupt.  We'll happily do the paperwork for you for this, over the internet or through the post.

If you decide that you'd like to talk to somebody about going bankrupt, or cancelling an existing Debt Agreement Proposal and you'd perhaps like to use one of my services to help you with all of the paperwork, just call 1300 794 492 and ask for Fred or Steve, or you can get this started now with an email to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  

Bankruptcy can turn things around for you, it can be so positive. It’s not the last resort that some websites and people talk about, in my view, that is absolute garbage.  Ignore people who say that to you.  They either don’t know, or want you to sign up with them. 

You'll probably understand this too, but from what people say to me now, and have told me over the years, I'm certain that bankruptcy saves lives, and marriages too.

Debt is a cancer, but it can quickly be removed.

You could be bankrupt and out of debt in about a week. We can quickly get your paperwork done for you, and if you choose to, you can actually start going bankrupt in an hour or two today, if you think that bankruptcy is your answer

If you email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it then please include your telephone contact details in your email, and a run-down of your debt, what you do for a living and what amount generally goes into your bank account on payday, tell me about your car, its year and model, and what you still think that you owe on it, and apart from ordinary household stuff, whether you've got any other assets like a house or a speedboat or a racehorse etc.  You'll then hear from one of us fairly quickly.

For those worried about bankruptcy and retirement then overwhelmingly with bankruptcy your super is safe, regardless of how much is in it.  It's protected by bankruptcy unless you've done something shonky, like loading it up with contributions just before you went bankrupt so that that money wasn't available to pay your creditors.  That might have trouble passing the smell test. 

If you've put money into super in the ordinary course, even big amounts, then overwhelmingly, in bankruptcy, your super is safe.  Bankruptcy and pensioners or retirees is generally a pretty good fit. 

In bankruptcy, always use your common sense, so have a good think before, while you are under so much pressure and stress, you rush in and take your superannuation out to pay your creditors.  You might need it later in your retirement, which is what it's there for, so bankruptcy right now might be a better option.

Here's a testimonial, quite unsolicited.

and another one...

In Bankruptcy Information Note 3 and Bankruptcy Information Note 4 you'll also read about Nick Crouch and Shabnam Amerbeaggi, Chartered Accountants who I ask readers to call direct if you consider that your matter is in the larger business category or you’ve got a company with assets, anywhere in Australia, and so you feel that my website may not be so appropriate for your problem. After Nick, or Shabnam, a partner of the firm, has spoken to you, come back to me and I'll do the paperwork for your bankruptcy.

A high profile job handled by Nick Crouch's office was the liquidation of the company that owned the Sydney Kings basket ball team, and in the Sydney Morning Herald of 12th June 2010 I saw an article about Nick as the liquidator of the failed Eldersleigh Finance Corporation.  Mention my name if you contact Nick or Shabnam please or we can introduce you. 

The telephone number of Crouch Amirbeaggi is 02 8262 9333 and their address is Level 403, 55 Lime Street, King St Wharf, Sydney 2000, and their email is This e-mail address is being protected from spam bots, you need JavaScript enabled to view it    Nick and Shabnam are there for bigger company and business matters.  You can read about some of their jobs on their website www.bankruptcy.net.au

As I've said before, bankruptcy will cancel things like credit card debt, store card debt and mobile phone debt, on unsecured overdrafts and unsecured personal loan debt, your personal income tax and GST debt, any personal guarantees debt, on other loans debt, and if you're in business, your unsecured business debt too.

Tax debts also get cancelled.

They all get bundled up and then get paid by your bankruptcy trustee, if he or she gets the funds to do so. If no funds are generated for or by your bankruptcy, then that's it, the debts never get paid.  Either way they're not your problem anymore.

If you are also involved as a director of a Pty Limited company then in some cases some of the company tax debts for employees tax deductions not paid to the tax office, can become yours.    Director Penalty Notices are a real issue. If this is part of your problem then I suggest that you email us about it quicksmart This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Bankruptcy doesn't cancel Centrelink debt, Child Support debt, some HECS debt and loans to do with your higher education (there's a special term for it), or court imposed fines. You'll read about these, and traffic fines, which are a special case, in these pages.

Later on you'll also read more about travelling overseas if you are bankrupt. There's a huge amount of wrong information about this in the community, and on other websites wanting your business.

Despite what some websites and accountants might say, in about 10,000 bankruptcies I've only known of a few cases where the person going bankrupt had to hand their passport to their bankruptcy trustee. Overwhelmingly you don't.  If you do, you get it back again to go overseas.  It's not an issue but the debt agreement salesmen sometimes try to make out that it is..

Basically speaking, to go bankrupt in Australia, you have to be here to do it, and have an Australian address and/or have some business connection here.  It's called a connection to Australia.  My system can get the paperwork done for you though before you arrive. 

To go back overseas you have to get the permission of your bankruptcy trustee.  You'll get it, but allow about 2 weeks here for it all to happen.

Throughout these pages I talk about your credit rating a lot. Bankruptcy and a Debt Agreement Proposal and a Personal Insolvency Agreement all damage your credit rating with the commercial credit rating agencies for 7 years so you will find it hard, but not always impossible, to get a loan again in that time.  You won't get a loan during the three years of your bankruptcy.

At the end of your bankruptcy in 3 years time, the whole banking and financial world will probably be different (it's different now to what it was 3 years ago), and there'll be thousands more people going through bankruptcy along the way by then, (and maybe a country or two as well) so if you're looking for a car loan or a housing loan then, while you've still got some of the 4 years of a bad credit rating, just see what's around.

Be worth lending to that's the secret.  Use the time that you're bankrupt to save up.  The more deposit you've got, the more that you're likely to be helped, but be prepared to have to sit out the 7 years.

You can save your income in the account that it went into as wages or salary, or another account, and it should be safe from your bankruptcy trustee, as its income.  However, any other monies going into these accounts, like lottery winnings or gifts to you, can be claimed by your bankruptcy trustee during the 3 year term of your bankruptcy.  During this 3 year period, keep using your common sense.

By the way, in case you are wondering how many people go bankrupt in Australia, am I the only one, there's currently about 25,000 to 30,000 people a year who go bankrupt.   In round figures there are probably about 85,000 people currently bankrupt in Australia right now, somewhere in their 3 years. 

If they all lined up, shoulder to shoulder, and took about 1 metre each, the end of the line would be about 85kms away from where you are now. Where would that be? 

Hold your head up high, you're one of a big crowd. You're about to start getting back on your feet and on with your life. Somewhere along the line the wheels fell off, that's all. 

Back to Debt Agreement Proposals for a minute, if you don't want to go bankrupt but want to consider a Debt Agreement Proposal or a Personal Insolvency Agreement, then I talk about these in Bankruptcy Information Note 3. They still tie you up to your debt, mostly for about 5 to 7 years it seems. Also, after paying the upfront fee, if your creditors say no, what will you do then???

This is an extract from an email that I received on 21st September 2009…….

"I entered into a debt agreement in 200X and have been paying $250 a week instalments against a debt of $56,000, plus $4000 was paid upfront to (the debt agreement salesman's company) who consolidated the debt.  So now, from my understanding from your website 75% of the debt will go to the creditors and 25% of this will go to the insolvency company (the debt agreement administrator).  What I don't understand is why did (the debt agreement salesman's company) take $4,000 and shouldn't this be in the 25% distributed to the consolidator's fee?"

If I went into a debt agreement I'd make sure that the repayment arrangements are, from my point of view, workable.  I'd consider that bankruptcy was always my other option.

Debt agreements and Personal Insolvency Agreements are possibly good in some circumstances, but overwhelmingly I've got my doubts with others. Again, if it were me I'd ask myself if bankruptcy could be a far better option. 

Details on Personal Insolvency Agreements are in Alan Nicholls website, www.nichollsco.com.au

A lot of people tell me that they do want to pay their debts, but they can't at the moment, and the system is just putting unreal and unrealistic pressure and demands on them. Check out what I did about this in Frequently Asked Questions.

I was sent an article out of the Canberra Times (page 24) dated May 20, 2006 headed Petrol Prices, interest rates pushing more Australians into financial crisis. It gave an example of what can happen under new debt recovery laws introduced in late 2005. It seems that this law change applies Australia wide.

The example showed that a person on a wage of $600 a week could be left with just $272 after their wages had been garnisheed by a creditor, ie, after the sheriff's been around and a creditor has taken you through the legal system, you could be left with just $272 a week to live on, week after week, month after month. Today the figure might be slightly different, but not by much.  I still get emails and telephone calls telling me that it's happening.

I think that it's worth noting here that bankruptcy, or entering into a debt agreement proposal, would prevent this happening.  If the person above was bankrupt, they would have been able to keep the $600 in full.  In my view bankruptcy law is more humane than debt collection law. If they were earning $917 a week, they would have been able to keep the lot.

You'll read in other bankruptcy websites, probably as a bit of a put down on us, that if you are bankrupt you may have trouble renting.  Note that the word may is used, not the word will.  See why I say that it's a bit of a put down.  Again I have also noted that these websites really try to push you towards a Debt Agreement Proposal. 

Look, I find that people who are bankrupt, rather than having to go through the indignity of being refused rentals just because they are a bankrupt, use their common sense when filling out their personal details on estate agents forms.  I'd use my common sense here, I'm sure that the government would rather I got a rental under my own steam than have to fall back on them for housing commission assistance, or have me sleep under a bridge.

In bankruptcy, don't break the law, but use your common sense.  If I were going to go bankrupt then I'd make sure that I didn't go bankrupt owing money to my service providers.  I reckon that that would stop life becoming just that much harder. Before I went bankrupt I'd pay things like gas, electricity, telephone, rent etc before I went, but I wouldn't use my credit card though. 

If you're not too sure how to do get and print out this additional information, just put your mouse pointer on the relevant Information Note listed under menu at the top right hand side of this home page, and click.

Up until now bankruptcy has probably been new and frightening to you, and there's a staggering amount of misinformation and pressure on you out there about it.  As you read these notes I'll simply try to give you information and answers. Because I've been where you are at now, you'll identify with a lot of what I say, you'll feel much better.

You might be interested in reading this testimonial that came to me, unsolicited, in April 2006.

No mention anywhere of the so called stigma of bankruptcy is there?  If people worry you by rabbiting on about the stigma bit, take it from me, they're not talking from the heart, but just from either the training manual, their hip pocket, or as is quite often the case with friends and relatives, they don't know what else to say. For friends and relatives, just give them a print out of this website to read, or give them the website address www.fredappleton.com.au  

Here's an extract from an email to me from a lady who used this service to go bankrupt. It may strike a cord with you and where you're about at at the moment.

(It took me a bit longer for the feeling of Relief, peace that this lady refers to, to happen, about 3 to 4 weeks I'd say.  By then I'd realized that the phone calls and harassment had stopped, and that the roof hadn't caved in)

Print out the testimonials in Bankruptcy Information Note 6, they are worth reading too. They're all real, and are just a sample of what I regularly receive.

As I've said before if, after reading all of the information on this website you feel like getting in touch, by all means do so.

You're under no obligation if you make contact. If you don't have email then you can make contact by post.  The address is:

Fred Appleton's Office,
PO Box 588,
Helensvale QLD 4212. 

My colleague Helen Millward will be in touch. 

If you're an accountant or a solicitor and you think that my website could be a useful bankruptcy information tool to add to the links shown on your website, then by all means please go ahead and establish the link.

There's a lot to read here so why not save it in your Favorites or Bookmark it now?  Don't forget to hit Refresh each time you come back to read a bit more.

And thanks for coming here in the first place, at the end of the day I hope that it helps. 

Fred Appleton

Click Here to Read the Frequently Asked Questions