Declaring Bankruptcy in NSW
Even in the toughest financial positions, there are paths back to a happy and debt-free life. If you’re looking at declaring bankruptcy in NSW, Debt Rescue can work with you to find the best solution for you.
To start relieving the stresses of debt, reach out to one of our Case Managers today.
Is bankruptcy my only choice?
Not always. It depends on the nature of your circumstances, and whether another solution might be possible. For some people, bankruptcy can be avoided by opting for:
Debtstroyer Informal Agreement
One of our Case Managers will work with you and your creditors, and look to reach an informal agreement where you pay back what you can (often without affecting your credit history).
Formal Debt Agreement
Using the legal frameworks of a Part 9 Debt Agreement, your Case Manager will help you arrange an agreement to pay back as much of your debts as you can.
Is bankruptcy right for me?
It may seem like the easiest way to resolve your financial situation. But before you declare bankruptcy, it’s worth taking into account:
- Your income – Having a stable and significant income might open up a debt agreement as an option to resolving your debts.
- Lifestyle changes – Sometimes your finances can be affected by lifestyle changes outside of your control. If you’ve been affected by loss, separation, redundancy or health concerns, we may be able to work with your creditors and reach an agreement to help you avoid bankruptcy.
- Your career – Some roles with licences require that you haven’t declared bankruptcy. If your career could be affected by bankruptcy, it’s worth considering debt agreement options first.
It’s never easy to tell what the best option is. That’s where our Case Managers come in handy. With our expert knowledge in financial management, we can help guide you towards a solution that’s tailor-made for you.
Help Through All Bankruptcy Forms in NSW
The processes involved in declaring bankruptcy in Sydney can be tricky. But with Debt Rescue, your friendly Case Manager will take care of all the forms associated with bankruptcy, making the process as stress-free as possible for you.
We’re committed to getting you through your difficult financial times with as little fuss as possible, so you can start enjoying life again.
FAQs for Declaring Bankruptcy in Sydney
Will I lose all my belongings if I declare bankruptcy?
Quite commonly, no. Your trustee will sell assets to reduce your debt, but some assets can be protected. These can include:
- Household appliances and items
- Money in the bank (normally up to $2,000), so you won’t struggle with basic living expenses
- A car valued up to $7,900
- $3,750 in trade tools
- Your superannuation (except if you made irregular contributions just before you went bankrupt).
You might even be able to stay in your own home if your co-owner, spouse, friend or family is able to purchase it from the trustee.
Do I have to go bankrupt if I can’t afford my debts?
Again, no. If you’re earning an income, or you need to avoid bankruptcy for employment reasons, it’s worth considering:
- Refinancing your home – You can save on fees and interest by consolidating your debts.
- Informal debt agreement – We’ll help you reach an agreement that won’t affect your credit history.
- Formal debt agreements – Formal agreements can resolve debts, without declaring bankruptcy.
Will my friends and family find out I’m bankrupt?
Not if you don’t want them to know. Officially, your creditors will be notified that you’ve declared bankruptcy. And any creditor who you apply for credit from will access your credit history, and find out.
Otherwise, the only people who know will be the ones you inform.
Chat to a Case Manager Today
If you’re in need of financial help, why wait? Chat to a friendly Case Manager, and we’ll help you get back to a happier and stress-free life.
For a chat about your finances, give us a call on 1800 00 3328 today.