Garnished wages & frozen bank accounts

If you are experiencing difficulty accessing your money it may be your bank account has been frozen or your wage has been garnished.

Cash or money in bank account

The trustee can take any cash or money you have in a bank account at the date of bankruptcy, but will leave you with enough for modest living expenses. 

My bank account is frozen

It's possible that the bank, or your trustee may have frozen your account. If you're having problems accessing funds in your account, first contact your bank. If you're unable to access your account due to your bankruptcy, contact your trustee.

My wage is being garnished

Normally, bankruptcy stops your wages being garnished for a debt, if you include it in your bankruptcy. It’s your responsibility to inform your trustee of any garnishee orders. If your wage is still being garnished, contact your trustee.

An exception is if the Australian Taxation Office (ATO) issues a garnishee order against you before your bankruptcy starts. This allows the ATO to garnish your wages during bankruptcy to offset any debt to them.

Note: This only applies if the ATO has a statutory garnishee notice (under s260-5 of Schedule 1 of the Taxation Administration Act 1953).

Direct debits

It's your responsibility to cancel any direct debits you have set up with your bank. It is best to speak to your bank directly if you want to stop a direct debit.