Bankruptcy

If you are interested in a Bankruptcy simply click here and one of our advisors will call you back when you specify.

Australian Debt Solutions    

Debt Consolidation made easy

The bankruptcy section of this website is divided over two pages. This first page gives and overview of what bankruptcy  is and how it works. The second page is an FAQ and is regularly updated to include up to date amounts and changes to the law. Please be aware that if you require anymore information please do not hesitate to contact us for a more in depth conversation.

 

Introduction to bankruptcy

 

Bankruptcy is a recognised method of consolidating debt. Many people have misconceptions of bankruptcy mainly due to perceptions based on historical assumptions or hearsay from those who think they know the facts about bankrupcy.

 

The truth of the matter is that bankruptcy is different for everyone as everyone’s financial situation is different. No one can say for certain what your bankruptcy will entail and that is why it is important to seek professional advice.

 

Is bankruptcy right for me?

 

Firstly, you need to ask yourself if your financial situation is really that bad? Generally, if your creditor commitments are greater than your income you are technically insolvent and therefore may to seek further advice about bankruptcy or Debt Agreements.

 

Bankruptcy and how it works

 

If, having sought further advice you decide to declare bankruptcy you will first need to seek the services of a registered trustee or your local Insolvency and Trustee Service of Australia (ITSA) office who will assist you in preparing your statement of affairs. Your statement of affairs will include your name and address as well as details of your income, any assets you own and creditors (you must continue to pay secured creditors and are not included in bankrupcy). You must disclose details of all your creditors as failure to do so can result in penalties including imprisonment.

 

Once your statement of affairs has been prepared your trustee will submit it to the official receiver. The official receiver is normally an ITSA representative who will then review your case and if appropriate will then accept your bankruptcy petition. Your bankruptcy will last for three years during which time your financial affairs will be managed by your trustee.  Your trustee will assess your circumstances and decide if any funds from your estate can be repaid to your creditors.  If you are a homeowner and there is significant equity in your property your trustee may sell your property for the benefit of your creditors.

 

The usual period of bankruptcy is three years however this can be extended (see FAQ) if you fail to adhere to the terms of your bankruptcy. You may also struggle to attain credit for a number of years after you have been declared bank so do keep this in mind.

 

If you require any further information regarding bankruptcy please consult our FAQ, Resources Page, our contact us by clicking on the link below and one of our Debt Counsellors will call you back when you specify. 

 

There really is no need to delay. Simply click here to see if you qualify for one of our debt reduction programmes

Click here to view and subscribe to our weekly blog. Each week we discuss a different topic as well as offer advice on how to deal with debt.