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Declaring Bankruptcy
Credit Counsellors Australia

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How To File For Bankruptcy in Australia

It’s not an easy decision to declare Bankruptcy and there are often a number of considerations to be given before declaring Bankruptcy in Australia. At Credit Counsellors Australia we do everything we can to help our clients avoid Bankruptcy however, in the few cases where this is not an option, we can ensure you have all the facts you need to make an informed decision. We have helped a number of clients file for Bankruptcy and are here to advise you through every step of the process. Contact us today to discuss your options and legal requirements.

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Personal Bankruptcy: Voluntary vs. Involuntary

Voluntary Bankruptcy refers to the process whereby when you are unable to pay your debts and/or reach an arrangement with your Creditors to repay the outstanding debts, you decide to voluntarily lodge a petition (Debtors petition) to become bankrupt.

Involuntary Bankruptcy refers to the process that occurs when an agreement can not be reached to pay outstanding obligations and the Creditor is forced to lodge an application with the court to make you bankrupt.

What Are The Consequences Of Declaring Bankruptcy?

  • Possible sale of your assets: Ordinary household assets and tools used to earn an income (up to a certain value) may remain in your possession, however, assets such as your home can be sold by your Trustee
  • Potential implications may extend to your income, employment and business: If your income exceeds a certain level, you may be required to make contributions from your income
  • You may not be released from certain types of debts: while most unsecured debts will be released, certain types of debts are not covered under Bankruptcy (i.e. child support debt, penalties, fines, etc)
  • Travelling overseas will be affected: You will need written permission of the Trustee to travel overseas and your passport may need to be surrendered to the Trustee
  • Your name will be listed on the National Personal Insolvency Index (NPII) forever: The NPII is publicly searchable register
  • Your ability to obtain credit in the future will be affected: You will have challenges purchasing items on credit

For further information on how to declare Bankruptcy, to discuss your options, or to understand more around the process of how to apply for Bankruptcy, please contact one of our dedicated team members today.

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