How much is your business worth?

Talk to the experts - Business Reconstruction Experts.

Chamberlains SBR specialises in business reconstruction and insolvency. Our firm works to complement and enhance the service being provided to clients by accountants and solicitors. We provide a full insolvency service, performing both corporate and bankruptcy administrations

How much is your business worth?

Talk to the experts - Business Reconstruction Experts.

Our practice has been successfully built up on a policy of saving and salvaging financial problems rather than dismantling the insolvent. If there is no other alternative, we will be honest in saying so. We pride ourselves as being country practices who have made the commitment to regional areas.

How much is your business worth?

Talk to the experts - Business Reconstruction Experts.

Chamberlains SBR works solely in insolvency accounting and do not offer any other accounting services. Accountants can refer insolvency matters safe in the knowledge that we do not do taxation or general accounting work, and there is no prospect of the client changing to our firm. We welcome enquiries from Accountants and Solicitors to discuss a client's financial problems.

What is Bankruptcy?

Bankruptcy is a formal means by which a person or persons who have debts in excess their capacity to service can gain a release from that obligation by filing for Bankruptcy.

What are the consequences of Bankruptcy?

You will be bankrupt for a minimum of 3 years. In certain circumstances your trustee may file an objection to your discharge and extend your bankruptcy by a further 2 or 5 years if you fail to; .

Provide information to your Trustee
Disclose to your Trustee all income
Pay assessed income contributions
Explain how money was spent, or
Reveal all assets and creditors

Your name will be on a public record (NPII) forever and on a commercial credit reference record for up to two years past your discharge date.

You must assist your trustee at all times. You must immediately notify your trustee in writing of any change in your personal circumstances (including name, address or income).

If you are in business and trade under a business name different to your own, you must tell everyone you deal with that you are an undischarged bankrupt. If you don't you may be subject to a criminal prosecution.

You will be able to keep ordinary household goods, tools used to earn an income (up to a set limit) and a vehicle (up to a certain limit) but other assets – including net equity in your house – will belong to your trustee and can be sold. You cannot conceal, remove or dispose of any property (whether inside or outside Australia) that could be used to pay your creditors.

If your income exceeds a set limit, you may be required to make contributions from your income.

If you are applying for a credit above a set limited, you must tell the credit provider you are bankrupt. If you are buying something by cheque, entering into a hire purchase agreement or promising to pay or swap goods and services for something that is worth more than a set limit, you must tell the seller you are bankrupt. If you don't you may be subject to a criminal prosecution.

You will not be able to travel overseas without the written permission of your trustee and you may be asked to surrender your passport to your trustee.

You may find it hard to borrow money, buy things on credit or get a renew insurance.

You may find it hard to rent, get electricity, water or the telephone connected without paying a bond.

Your job opportunities may be affected, especially with jobs handling money or where a licence is required.

You cannot manage a company.

You cannot hold certain public positions without permission.

How do I go Bankrupt?

It is relatively easy to go Bankrupt if that is your only alternative as the appropriate paperwork can be obtained by contacting Chamberlain's S.B.R at any of our offices or download from

Does Bankruptcy release me from all my debts?

Bankruptcy does not release you from the following:

Court imposed fines and traffic infringements.
HEC's debts if incurred post Bankruptcy.
Arrears in maintenance payments.

What do I keep if I go Bankrupt?

A bankrupt may keep vehicles (cars or motorbikes) used mainly for transport up to this limit. The amount refers to the equity in the vehicles (the value of the vehicles less the sum owing under finance). $7,800
Tools of Trade of approx $3,700
Normal household furniture and effects
Property acquired through personal injury or compensation monies
Property acquired from Rural Assistance Re-Establishment Grants


Do I lose my house?

Not in every instance as this is negotiable with your Trustee as effectively he/she is only looking to recover the Bankrupts net interest for the benefit of creditors and this can be purchased.

What happens to guarantees provided by me?

Once bankrupt you are released from all prior guarantees executed.


What happens if someone else has guaranteed my debt?

If you go bankrupt and another person has guaranteed your debt they will be liable for that debt.


What can I earn in Bankruptcy?

  • Below are the current net income rates you can earn in bankruptcy (as at 01.02.18) subject to your number of dependants.

    Base Income Threshold Amount (BITA) No dependants

    Used when calculating a bankrupt’s income contributions.



    Number of Dependants
    Income Limit
    over 4

    Note, as the Bankruptcy Act is in respect to individuals should a husband & wife with 2 dependants both go bankrupt then they can both claim the dependants and earn the appropriate level of net income. i.e. net $70,913.75 each.

    Should the Bankrupt/s Income exceed the net threshold then the above table provides a rough guide as to those income contributions required to be made back to the Trustee for income earned during the (3) three year period of bankruptcy.


What happens to my superannuation in Bankruptcy?

Superannuation held in a complying fund is protected and not divisible amongst creditors subject to that fund not having had extraordinary lump sums paid into it during a relevant period prior to bankruptcy (suggest call to discuss should you have any questions).

There is no limit as to the level of funds you can have in a superannuation fund subject to as previously mentioned the funds having been contributed in the ordinary course.

Superannuation funds accessed once in Bankruptcy retain their protected status whilst any superannuation funds accessed prior loose that status and can be recovered by the Trustee.

What happens to my credit rating?

Your bankruptcy will be recorded on Public Record (i.e NPII) forever whilst your name will be recorded on the Credit Reference Association files for 2 years after your discharge from Bankruptcy.

Can I still have a bank account?

You can still run a normal Banking or cheque account.

Does Bankruptcy affect my employment?

Very rarely is this an issue however in some public positions or the handling money etc, there may be an issue and I suggest if in doubt ask.

Can I be a Director of a Company?

No, you cannot nor can you be a Defacto Director.

What happens to any assets not sold?

Property disclosed in a bankrupt's statement of affairs and not sold by the trustee will revest in the Bankrupt upon expiration of the 6th anniversary of the date the bankrupt was discharged. A Trustee though may in writing prior to the expiration period extend same for a further (3) three years. There is no limit as to the number of extensions.

Can I get out of Bankruptcy?

A debtor can at any time during his/her period of Bankruptcy request his/her Trustee put a proposal to his/her creditors by way of Composition under Part IV Division 6 of the Act.

This is in effect any proposal creditors are willing to accept that prima facie will provide them with a higher return in the dollar dividend should in the alternative they remain bankrupt.

Upon Creditors acceptance your Bankruptcy is annulled.


What offences are there that I need to be aware of?

Section 265 (1)

(1) A bankrupt:
(a) Shall fully and truly disclose to the trustee all of the property of the bankrupt, and its value;
(b) Shall fully and truly disclose to the trustee particulars of any disposition of property made by him or her within the period of 2 years immediately preceding the date on which he or she became a bankrupt;
(c) Shall not refuse or fail to comply with a direction by the trustee to deliver to the trustee property in the possession of the bankrupt, being all or part of the property of the bankrupt;
(Ca) shall fully and truly disclose to the trustee such information about any of the bankrupt's conduct and examinable affairs as the trustee requires;
(d) Shall not refuse or fail to tell the trustee where the books (including books of an associated entity of the bankrupt) relating to the bankrupt's examinable affairs may be found;
(e) Shall not refuse or fail to comply with a direction by the trustee to deliver to the trustee books (including books of an associated entity of the bankrupt) that are in the possession of the bankrupt and relate to any of the bankrupt's examinable affairs;
(f) Shall not omit any material particular from a statement relating to any of the bankrupt's examinable affairs;
(g) Shall, if he or she knows that a person has lodged a proof of debt in the bankruptcy that is false, forthwith inform the trustee of the fact; and
(h) Shall give to the trustee a full and proper explanation of any loss or depreciation of any of his or her assets or part of any of his or her assets that occurred within the period of 2 years immediately preceding the date on which he or she became a bankrupt.





Contact Information Wagga Wagga

Wagga Wagga Suite 103, 1st Floor
Wollundry Chambers 63-65 Johnston Street Wagga Wagga NSW 2650

P.O. Box 852

Wagga Wagga NSW 2650

P (02) 6938 3800
F (02) 6921 5492

Contact Information Dubbo

Suite 2, 1st Floor,

47-59 Wingewarra Street
Dubbo NSW 2830

P.O. Box 1250
Dubbo NSW 2830

P (02) 6884 1077
F (02) 6884 1072

Contact Information Wangaratta

15 - 17 Ely Street
Wangaratta VIC 3676

P 1300 887 687
F 1300 798 825