What happens to my debts?
If you cooperate with your trustee, surrender your assets and pay your contributions, your trustee will issue a letter of discharge at the end of your trust deed. A copy of this will be sent to the Accountant in Bankruptcy and your discharge will be recorded in the Register of Insolvencies.
When you are discharged from a protected trust deed, you will be discharged from any outstanding debts which were due at the date you signed your trust deed. This means that your creditors are no longer allowed to pursue money that was owed to them when you signed the trust deed. There are some important exceptions to this rule.
A trust deed does not discharge you from the following kinds of debt:
- fines, penalties, compensation and forfeiture orders imposed by any court;
- any liability due to fraud;
- any obligation to pay aliment;
- student loans; and
- money owed to someone who holds a security on your property, such as a mortgage or secured loan.