bankrupcy (Australia)


	bankruptcy is a legal process that involves cancelling all your debts.


	you lose all your assets execpt for a low-cost car and household goods.

	
	also, part of your salary or other income is taken for the next three years.


	the bankruptcy stays on your credit file for 5 years after discharge, which means

		that is it basically impossible to get any credit for 8 years after the bankrupcy is declared.


	tha laws of bankruptcy started hundreds of years ago in England, as a way to give

		a person a second chance in life when they had more debts than they could repay. 




Personally I applied for bankrupcy in my mid 30's because I was starting to get old

	and I knew I would never be able to save for my retirement due to my debts.