Business & Commercial Law FAQ - If I declare myself bankrupt will I be able to escape my creditors?
Date: March 03, 2011
Q. If I declare myself bankrupt will I be able to escape my creditors and get on with my life and start again?
A. No. One of the reasons why a bankrupt may not be given a discharge for three, five or seven years is because where the bankrupt is in employment or able to find employment then all of their money after payment of their income tax which is not required for the necessities of life will be taken by the trustee in bankruptcy and applied to payment of their debts where creditors have lodged a proof of debt with the trustee. In other words it is not simply just a matter of declaring yourself bankrupt and then being able to use all of your disposable income for your own purposes. It is this latter point which most people tend to overlook.
