Personal Bankruptcy refers to the process where an individual is unable to meet outstanding debt obligations and seeks refuge through Bankruptcy Legislation. Personal Bankruptcy is a serious decision and has a number of implications that need to be considered by an individual prior to deciding to file for bankruptcy. There are two types of Personal Bankruptcy: Voluntary Bankruptcy and Involuntary Bankruptcy, which are both explained on our declaring Bankruptcy page. Given how severe the implications of declaring Bankruptcy are, at Credit Counsellors Australia we advise our clients to pursue alternatives that can help avoid Bankruptcy through other Formal Agreements with less severe implications.
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Sometimes filing for Bankruptcy may be the only option, in which case our team can walk you through the process and ensure you have all the information and help you need. The process for filing for Voluntary Bankruptcy is as follows:
Prior to commencing Bankruptcy proceedings, you can file a declaration of intention (DOI) to present a Debtor’s petition. This is an option available under the Bankruptcy Act that provides temporary protection from Creditors for up to 21 days, and is intended to allow you time to decide whether to proceed with Bankruptcy or to pursue Bankruptcy alternatives
If you are unable to pay or reach a suitable repayment arrangement with your Creditors, you need to lodge a ‘Debtor’s petition’ to become bankrupt, and a statement of affairs with AFSA. These documents are generally processed within 24 – 48 hours.
Once these documents are accepted by AFSA you are then considered bankrupt. You will receive confirmation of your Bankruptcy number via mail, and a document outlining your obligations whilst bankrupt.
The implications of filing for Bankruptcy are severe and cannot be undone once your application has been submitted. To discuss your options and alternatives to Bankruptcy or for assistance with filing for Bankruptcy, contact our team of professionals today. We can provide you with a FREE debt assessment, which outlines all available options and ensures you make the right decision for you.Get My FREE Debt Assessment
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