Bankruptcy in Australia

14th February, 2013No Comments

Bankruptcy in Australia is a very concerning problem. With one in eight Aussies living below the poverty line, almost 2 million people earn less than half the national median wage. Combine that with the state of the housing market and the severe loss of jobs occurring across the country and you’ve got a society living in dire financial straits. In fact, almost 70% of Australians have said they are suffering from financial stress.

Are you at risk of falling into bankruptcy in Australia?

Bankruptcy doesn’t discriminate.  The only criterion you need to fulfil to become bankrupt is that you are an Australian citizen who can’t repay their debt. It is for this reason bankruptcy can strike young and old, high income earners and low income earners, pensioners, retirees, students, business owners and stay at home parents. Anyone could have to declare bankruptcy in Australia, particularly when your debt becomes unmanageable and out of control.

What is the process for declaring bankruptcy in Australia?

Once you have declared bankruptcy in Australia, the Australian Financial Security Authority (AFSA) will assign a Trustee to your case. Your Trustee will then asses your situation and your assets to determine what must be sold. Any valuable assets over a certain amount will be sold with the proceeds from the sale being divided among your creditors.Your Trustee will also take any income you earn over a certain amount and go through your history to ensure you haven’t passed off any assets. While you are bankrupt your travel to overseas destinations or borrowing money can be restricted.

Are there any benefits in declaring bankruptcy?

Bankruptcy in Australia eliminates your commitment to repay your debts. Declaring bankruptcy means you do not have enough money, or value in assets to repay the debt you owe and your current circumstance doesn’t look as though it will ever improve.

Once you have declared bankruptcy in Australia, your Trustee will do the best they can to compensate your creditors for their loss by selling the assets you do own. However once the period of bankruptcy has ended you will have no debt to speak of and a solid foundation to try to rebuild your credit file.

How do I declare bankruptcy in Australia?

If you would like to declare bankruptcy in Australia you simply need to visit the AFSA website and navigate through the bankruptcy section. There is plenty of useful information and the official bankruptcy form you need to fill in. It is imperative you fill in all the questions honestly and consistently as any anomalies on your form can see the process dragged out.

Need more info?

Declaring bankruptcy in Australia can be a difficult and stressful process. If you require any assistance with your bankruptcy, call Australia’s premier debt relief service provider, Debt Rescue on 1800 00 3328. Debt Rescue can assist you through the entire process, answer your questions, ensure you have a good understanding of everything involved and double check your documents to improve your bankruptcy experience. If you are considering bankruptcy in Australia call Debt Rescue and Talk to An Aussie Who Cares.

[Callnow_button]

You might also like: