Are your creditors turning down every proposal you have in paying off your debts? Are they closing their doors to further negotiations? If you have run out of options on how to pay for your debt, there might be only one solution that could get you out of it — filing for bankruptcy in Australia. We understand that it might not be a pleasant word to hear, but in dire moments, it might be the only solution to save you or your business. But how do you file for bankruptcy?
Are you eligible for bankruptcy?
- You are no longer able to pay your debts upon their due dates (insolvent), and
- You are currently in Australia, either taking up residence or having business connections in the country.
According to the latest regulations set by the Australian Financial Security Authority (AFSA), there is no minimum or maximum amount of debt or income required to be eligible for filing for bankruptcy in Australia.
Additionally, if you are currently bound in a debt agreement (such as a Part IX or Part X agreement) but cannot keep up with the repayment and wish to go bankrupt instead, then you need to make written contact with your debt administrator immediately (via email is preferred) and terminate your agreement with them as debt agreements must be terminated before you can go bankrupt. Alternatively, talk to us and we can help you do this.
When is the best time to file?
Don’t ignore the warning signs — incessant calls from creditors, mounting bills, and no available finances are all signs that you need to take some action
The “when” decision is up to you. Of course, there are other options as well such as selling your assets to cover your debts, taking out more loans to cover those you already have or trying to negotiate better terms with your creditors. You will know if any these options are applicable to you. If they are not, then call us and we can help you know of any other options that may exist for your situation. However, waiting is often not a good option as creditors may begin federal court action against you and press you to bankruptcy, which can be a harrowing experience.
In the minds of many people, filing for bankruptcy australia signals the end of the line. They could not be further from the truth. Although there are some negative consequences to bankruptcy there is also the hope that bankruptcy could usher in a new beginning and a fresh start for you.
How Do You File For Bankruptcy
In Australia, the first step in claiming bankruptcy is to file a petition. This action can be made by you personally or by someone you owe money to. If it is done by you personally then it is called a debtors petition, however if it is done by someone you owe money to it is called a Creditors petition and is lodged by order of the Federal Court.
If you want to enter into bankruptcy voluntarily, you have to lodge an application with the Australian Financial Security Authority (AFSA) or with a registered trustee. Before doing so, it is highly recommended to talk to a financial counselor that could guide you through the whole process. This will make it more convenient for you and you will experience less hindrances along the way.
Essential Requirements to Submit
Every individual that applies for bankruptcy is required to submit the following forms:
- Debtor’s Petition which is where you indicate what you must claim,
- Statement of Affairs where you cite the causes of your bankruptcy,
- Acknowledgments whereby a declaration proves that you have read and received all the prescribed information and have a full understanding of everything.
If you wish to begin the process feel free to contact us and we can assist you through to the lodgement process of filing for bankruptcy Australia.
Talk to My Bankruptcy Today!
Don’t wait until it’s too late! My Bankruptcy offers assistance to clients across Australia. We are bankruptcy experts you can turn to for personal insolvency in Australia. We orient our clients on what happens after bankruptcy and direct them to a more financially stable future. We can assist you in filing for bankruptcy in Australia. If you want this for yourself and your business, contact us on 1300 255 059 or send a message to steve@mybankruptcy.net.au.