Filing For Bankruptcy
If you have tried all the options open to you to try and repay your debt and have now decided to file for bankruptcy, you will need to be aware of a few things. While it is possible to start anew after bankruptcy you need to be aware of the consequences of this action.
You should start considering bankruptcy only if you are unable to pay your debts and have not been able to reach a mutually agreed upon payment arrangement with your creditors. Bankruptcy can be done completely voluntarily. The other route to bankruptcy is if one of your creditors chooses to do so.
When this decision has been made you will need to fill out a Debtor’s Petition form. At this time you will also need to complete a Statement of Affairs where all the relevant details of your financial situation are disclosed. In this statement you will have to list all of your current assets and debts.
All of this information should then be forwarded to ITSA. ITSA is the government body that deals with bankruptcy. It is best that you make contact with a registered trustee who will be able to assist you with this process. If you have not appointed a trustee then ITSA will appoint one for you.
There is no specified amount of debt to make you eligible to apply for bankruptcy. The value of your assets and the amount of income you have are also not limited should you want to apply for bankruptcy. The only criteria for filing for bankruptcy in Australia are that you need to be a resident at the time of application or you have to own a home or business in Australia.
Once you have filed, the trustee will sell your assets and the funds raised will be distributed to your creditors. Household goods that you need for normal living and a car under a certain value will not be sold. You will also be able to retain any tools that you require to carry on your trade.
A period of three years is the amount of time that you will be bankrupt for. During this period of time there are a number of obligations that you will have to meet. Should you move and change address your trustee must be notified. You will not be able to travel overseas unless your trustee gives you permission to do so.
When filing for bankruptcy you may come across a number of complications. Consulting a professional in this field would be wise. Professional advice is just a single call away from an organization that can help you become debt free. Call 02 9631 2223 for free advice. Dec lare Bankruptcy