How to Declare Yourself Bankrupt in Australia

Are you planning to go bankrupt in Australia? There are millions of Australians who are facing financial hardships so you are not alone. Everyone has to declare bankruptcy or consider the option at a certain point of time. Even thriving businesses or wealthy people who are seemingly doing well sometimes consider going bankrupt in order to take a break from the rat race of debt repayments so that they can have some breathing space and reorganize their finances. Before you decide to go bankrupt, you will have to weigh your decision carefully and consider if it is something that you really wish to do if you still have options such as Personal Insolvency Agreements and Debt Agreements. Professional debt advisors such as Debt Mediators can help you decide whether bankruptcy is really an option that you should consider.

You might be surprised that there are still windows of opportunity through which you could get yourself back on your feet financially without necessarily declaring bankruptcy.

How to Go Bankrupt

When you are planning to declare bankruptcy, always treat it as a last resort and be open to many other options available which you could use to manage your debt repayments. There are various criteria that you need to meet before you decide to go bankrupt. You will also need to disclose certain information to the bankruptcy trustee. Check Debt Mediators for more details.

There are many restrictions which are put in place which you have to keep in mind when you are planning to go bankrupt. To declare bankruptcy, there are forms that you will need to complete and then lodge them with AFSA or lodge them with a Registered Trustee. During this process, it is highly recommended that you seek assistance from someone that has solid experience with bankruptcy claims such as Debt Mediators who can smoothly take you through the process.

This will make the process easier for you. It also enables you to proceed with your bankruptcy claims without any issues or hitches. There are lots of benefits that you will be able to get if you choose to work with a trustee when you are making your bankruptcy claims.

When you are making bankruptcy claims, you will need to fill in some three main forms and then lodge these with AFSA. It is the first then when you are going through the process of declaring bankruptcy. These forms can be obtained from a Registered Trustee or from AFSA. The forms that you will need to fill when you are declaring bankruptcy include the following:

  • The Debtor’s Petition form: here you can list what you need to file for.
  • Statement of Affairs: Outline the reasons why you are filing for bankruptcy
  • Acknowledgements: There are various acknowledgements that you will need to sign. This will show that you have gotten all the required information and you understand this information.

Filing for bankruptcy is generally a fairly straightforward process and you are unlikely to encounter any problems. Once you have filed, you are going to remain bankrupt for a period of 3 years if you fully cooperate with your trustee. If you don’t, the bankruptcy duration may be extended for up to 8 years! Talk to Debt Mediators today to learn more about this process and ensure that it goes on as smoothly as possible.

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