A Fresh Start After Bankruptcy: Why Ongoing Cooperation Matters

For many individuals, bankruptcy provides an opportunity to draw a line under financial difficulties and make a fresh start. While discharge, which generally occurs after three years, is a significant milestone, it is important to understand that some obligations and issues can continue beyond the discharge date.

One of the most important steps a bankrupt can take is to maintain open communication with their trustee. Promptly providing information, responding to requests and discussing any concerns early can help resolve outstanding matters efficiently and minimise future complications.

Compulsory income contributions are one example. Where contributions have been assessed under the Bankruptcy Act 1966, they should be addressed as soon as possible. Keeping a trustee informed of changes in income and raising payment difficulties early may help avoid unnecessary recovery action. Importantly, unpaid income contributions survive discharge and can still be recovered after bankruptcy