There are many debt resolution methods available to the individual. These include debt consolidation loans, mortgage refinancing and debt agreement. If you have tried these and they have proved unsuccessful, you may have no option but to opt for bankruptcy.
You can choose to declare yourself bankrupt voluntarily or a creditor could petition to the Court to have you declared bankrupt. Once you have made the decision to continue with the process, you have to complete a Debtor's Petition and a Statement of Affairs which should be forwarded ITSA who is the bankruptcy authority in Australia. At this juncture you can choose your trustee. If you do not choose one, one will be appointed to your case.
Once your petition has been accepted by ITSA, you will be bankrupt. The details that are required in your statement of affairs must show all your income, personal assets such as a house, bank accounts, motor vehicles, shares and any amounts owed to you by others. It must also show all your outstanding debts. Failure to disclose assets or income can lead to severe penalties including imprisonment.
There are no minimum debt amount stipulations if you choose voluntary bankruptcy. There is a stipulated minimum amount if a creditor chooses to make you bankrupt. Once you have been declared bankrupt, you will be discharged from all debts that can be proven. Creditors where you have unsecured debts cannot take any further action against you in an attempt to recover the amounts owing to them. They will have to lodge a claim in your bankruptcy.
The trustee may sell any asset where there is a reasonable return for the creditor.
You have to co-operate with your trustee in this matter. There are restrictions that will be placed on you by the bankruptcy. There are also actions on your behalf that may cause an extension of your bankruptcy period from three to ten years. This extension will be decided upon by your trustee and is dependent upon the rule that you may have broken.
Your employment status might not be affected by your bankruptcy, however, that is dependent upon your trade or profession. If you practice a trade where you require professional status or licensing, you may no longer be able to carry on that trade or profession.
Before you choose to declare bankruptcy, you should speak to a professional who has experience in this field. It will be to your advantage as the issue of debt resolution can become quite complicated. Call Declare Bankruptcy 02 9631 2223 for professional advice.