Bankruptcy In Australia? An Option, Get Advice & Help

The process of bankruptcy can be used by people who are unable to repay their debts. During this process they will surrender their assets as well as control of their financial situation. This process can be entered into voluntarily or by court order instituted by a creditor.

These cases are normally heard by either the Federal Court or the Federal Magistrates Court. If you choose to do this voluntarily, you will be required to complete a Debtor's Petition and Statement of Affairs. Usually if you voluntarily declare bankruptcy you will not be required to go to court. If a creditor petitions to declare you bankrupt, they will have to prove that you owe them money and that you have committed an act of bankruptcy.

The most common way to prove this is to show that you failed to pay a judgment debt within the specified time stipulated in the bankruptcy notice. You will be issued with a copy of the Creditor's Petition. Whether you committed this act or not will be decided at the time of the Court hearing.

The Court will have to take into consideration if you are the person who owes the money and that the stipulated amount is correct. They will also have to consider whether you are in fact able to pay your debts. In the event that you disagree with the petition, there are forms that you need to complete and file with the Court. These forms have to be filed a minimum of three days before the date of the hearing.

A trustee will be appointed to manage your bankruptcy. Some of your assets may be sold and if you earn over a specified amount, you may be required to contribute a portion of your regular income.Usually 50% of any earnings over the prescribed threshold figure. A complete analysis of your financial history may be done to determine if you own any assets that have not been stated in your petition.

When you are declared bankrupt, you will no longer have to pay the debts as listed on your petition. This refers to unsecured debts like store cards, personal loans or credit cards. If you have a mortgage loan for example, you might have to sell the property and pay the money to the financial institution.

There are certain types of debt that are not discharged by bankruptcy. These include child support, fines, student loans and debt from fraud. You will be able to retain your vehicle if it is your primary mode of transportation and if its value is lower than a prescribed amount.

You will remain bankrupt for a period of three years if you file for bankruptcy in Australia. However, there are instances where your Trustee may opt to extend this time. To get more details regarding the finer and more involved points involving bankruptcy, it is advisable for you to discuss your particular situation with a professional. We highly recommend that you use our services, because at Declare Bankruptcy we will find a solution to your problem on a personal level,