If you are placed into bankruptcy, your assets are vested with a trustee. The usual period for a bankruptcy is 3 years, but this can be extended.

Until you are discharged from bankruptcy, excess credits such as Pay As You Go (PAYG) tax withheld amounts, are applied to reduce any debts. Any amount remaining from these credits is then refunded to you.

When you are discharged from bankruptcy, any debts remaining from the pre-bankruptcy period are considered to be irrecoverable by law and written off. Assuming no other post-bankruptcy debts have been incurred, any excess credits arising after you have been discharged are refunded.