There comes a point in life when you will have to turn to creditors to provide you the money you need up-front to fund a new lifestyle, start a business, or grow an existing front to fund a new lifestyle, start a business, or grow an existing one. But what happens when those creditors start banging up your door day and night, hungry for your debt to be paid? It is a living nightmare!
When you can no longer pay sky-high debts and fail to keep your business afloat due to financial constraints, it might be time for you to file for bankruptcy. A bankruptcy notice fee comes with this. But it does not have to be the end of the line for you or your business. This could signal the start of a new chapter in your life. So, do not be afraid to do it. Delaying it would only make it worse.
Bankruptcy in Australia: What You Need to Know
Before you dive deep and jump straight into the complicated waters of declaring bankruptcy, there are some things you have to know. Each of these aspects are important since making a mistake might cause extensions on your bankruptcy discharge and do further damage than the one you started with.
Better yet, consult with expert financial counsellors to guide you through the process. In these times of trouble, a little help would come a long way. For now, here are some basic things you have to remember.
Not Everyone Is Eligible
Contrary to popular belief, not all people are eligible to file for bankruptcy in Australia. As per the latest update by the Australian Financial Security Association (AFSA), the requirements state that a person or a business could only file for bankruptcy if they are no longer capable of paying their debts upon their due dates, and if they are based in the country.
Bankruptcy Notice Fee Is Required
Once you have lodged your petition with the AFSA or a registered trustee, you may proceed with the bankruptcy process. We highly recommend consulting with a financial counsellor at this time as they might have some insights on the best way to proceed with your application.
As in any transaction, especially one that involves the public records and what not, you have to pay bankruptcy notice fee to be able to file for bankruptcy. The fees you will be paying will be determined by the Taxation Office upon your application. These may or may not include the following:
Service Fees needed for processing the following:
- Creditors’ Meetings. This entails the publishing of the details on the notice of the creditors’ meeting on AFSA’s website.
- Bankruptcy Register Search of the National Personal Insolvency Index (NPII). Fee is required to access online self-service search using Bankruptcy Register Search.
- Inspection of Public Documents. Bankruptcy notice fee is required to access publicly available documents for inspection.
Bankruptcy Notice Fee Application. This fee is charged for applying for a bankruptcy notice and is payable at the time of making the application. The fee must be paid regardless of the issuance of the bankruptcy notice by the Official Receiver. To date, the fee is pegged at $470.
- Debt Agreement. This entails the official debt agreement proposal lodgment fee of $200.
- Personal Insolvency Agreements. Fee is required for document processing and payable when controlling trustee authority is lodged with the AFSA.
- Overseas Travel. In some bankruptcy cases, especially with pending applications, applicants are usually withheld from overseas travel. With an overseas travel application, you can have a chance to still travel abroad despite your bankruptcy status.
- Official Receiver Notice (Issued at a Trustee’s request). This fee is necessary for the application for statutory notice.
- Taxation Services. These services include taxation of a bill of costs in relation to the administration of an estate and taxation of a trustee’s remuneration in an estate.
- Trustee and Administrator Registrations and Renewals. Fees are necessary for the application to be registered as a trustee or debt agreement administrator, initial registration, and renewal of registration every 3 years.
- Realisations Charge. This charge is 7% of the amount received by trustees and administrators in bankruptcies, debt agreements, compositions, and personal insolvency agreements.
- Interest Charge. To be determined based on the interest earned net of bank charges.
Administration Fees needed for the administration of:
- Bankrupt Estates
- Composition
- Debt Agreements
- Controlling Trustee Authorities
- Personal Insolvency Agreements
- Pre-bankruptcy control orders
The AFSA office also imposes certain rules on the payment terms which they list in detail on their website. To know more, you can visit their website or talk to a professional financial advisor to get more insights.
Get Advice from Professionals
If you are still confused as to the process of filing for bankruptcy and what happens after, seek professional advice! With My Bankruptcy, you get counsel from our bankruptcy experts in the business who will guide you through the complications of bankruptcy in Australia. We can help you fully understand what bankruptcy notice fee is.
Contact My Bankruptcy today through 1300 255 059. You already have enough on your shoulders, let us do the heavy lifting so you don’t have to. Rely your problems on personal insolvency Australia in us.
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