Declaring bankruptcy is not an easy decision to make, and whilst it provides immense financial relief, it should always be considered as a last resort. Once you declare bankruptcy you are no longer liable to make payments towards your debts. Instead your Trustee must look for available funds elsewhere, meaning you may lose significant assets in order for them to accumulate the funds required to pay off your debts.
But if you have assets of little value, earn a low to modest income and cannot afford to pay your unsecured debts, then personal bankruptcy may be your best option.
To declare yourself bankrupt you would need to complete the necessary forms and file them with the Australian Financial Security Authority. This process can be quite daunting and complicated for some, but this is where Insolvency Services Australia (ISA) comes in. A qualified team of insolvency experts, the ISA consultants can assess your financial situation for you and then complete and lodge these forms on your behalf.
As part of the service, ISA provides clients with a ‘bankruptcy kit’ that will help them to understand their obligations and ensure they do not risk extending their bankruptcy by unwittingly committing an offence.
Before declaring bankruptcy, contact Insolvency Services Australia and undertake a financial assessment to ensure that bankruptcy is the best solution. In some circumstances, ISA may be able to suggest and offer alternative solutions to bankruptcy, such as a Debt Agreement or Personal Insolvency Agreement. These agreements are legally binding payment arrangements governed by AFSA, and they were designed to help people to avoid bankruptcy unless it is absolutely necessary.
To find out how ISA can assist you with your personal debt situation and help you explore your options, contact us today on 1800 003 883.