Do you have debts that are spiraling out of your control? Are your negotiation attempts falling on deaf ears? When your debtors are no longer accepting the arrangements you propose, no matter how reasonable they may sound and suitable they may seem, bankruptcy may be your best option.
If you are in the dark on how to claim bankruptcy, there are expert financial counselors, like My Bankruptcy, that could walk you through the process. We understand that it is not the easiest process to go through considering the stress you have to bear with from needing to claim for bankruptcy in the first place, but with the right guidance, we can make this situation as stress-free as possible.
Before You Claim…
The first thing you have to realise is that the ways on how to claim bankruptcy in Australia requires strict adherence to the procedures set in place by the authorities involved. This process will require you to disclose specific information to your trustee. There are many cases that will drive an individual to claim for bankruptcy and there are certain restrictions, concerns, and aspects of bankruptcy you need to understand before claiming for it.
What is Bankruptcy?
Bankruptcy is a legally binding agreement between a debtor and a creditor wherein the former can no longer afford to repay their debts. In Australia, once your claim for bankruptcy it is recognized by the corresponding authorities and once approved you are absolved from paying your debts. Bankruptcy may be filed by an individual or a business that is unable to repay their outstanding debts. It is tedious and stressful, requiring many steps such as the following.
How To Claim Bankruptcy?
In Australia, the first step in how to claim 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.
Requirements for Bankruptcy
You must complete three forms from the AFSA, all of which you can obtain from their office or through your registered trustee. These forms include the following:
- Debtor’s Petition which is where you indicate what you have to claim,
- Statement of Affairs where you cite the causes of your bankruptcy,
- Acknowledgments whereby a declaration proves that you have read and received all of the prescribed information and have a full understanding of everything.
The process on how to claim bankruptcy is more or less straightforward. However, just because it seems linear does not mean that the actual process is as simple as it looks. Once lodged and approved the standard bankruptcy term is three years.
When Should You Claim?
Applying for Bankruptcy should be done when you feel you have absolutely run out of options relating to debt solutions.
Many people make the mistake of overlooking the facts and deliberately hold off on claiming bankruptcy for as long as possible because of the misleading negative connotations it brings to one’s business or personal life. It is rarely as bad as the stereotypes would lead you to believe, and more often than not, it might be the best option that could save you or your business.
This being said, there are some consequences to bankruptcy, so be sure to make an informed decision, and understand all the implications before you apply.
Work With My Bankruptcy
My Bankruptcy is a provider of debt solutions to individuals and businesses in Australia. We are a team of bankruptcy experts who can help you on how to claim bankruptcy. We operate in the areas of Queensland, New South Wales, Australian Capital Territory, Victoria, South Australia, Western Australia, and the Northern Territories. You may reach us through 1300 255 059 or send an email to steve@mybankruptcy.net.au.
We might be the help that you need. Don’t take any risks and work with us today!