3.6 Will I get the money I am owed?
Bankruptcy can take time to administer and can only realise whatever is in the debtor's estate plus any contributions that the debtor is able to make out of their income. Funds are distributed equally amongst all the creditors after paying for the costs of administration, the costs incurred by the creditor who petitioned for the debtor's bankruptcy and the debts due to any preferred creditors such as payments for the remuneration of employees.
Debts may not be paid if:
- a debtor has few, or no, assets of value;
- they have a low level of income; or
- the costs of administering their bankruptcy are high (for example, if there are complex legal issues involved).