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7.13.1 Overview debtor may become bankrupt by:

  • voluntarily declaring himself/herself bankrupt
  • the Department using bankruptcy as a means of recovery
  • another creditor using bankruptcy to recover a debt owed to him/her. becoming bankrupt, all responsibility for the bankrupt's assets and debts passes to the Official Receiver in Bankruptcy or to a private bankruptcy trustee. to section 149 in the Bankruptcy Act 1966, a bankrupt will be discharged three (3) years after the date of being declared bankrupt. The exceptions are where:

  • the bankruptcy has been discharged early
  • the bankrupt is undischarged from an earlier bankruptcy; or
  • the bankrupt has become bankrupt again since the bankruptcy.