Declaring Bankruptcy in Australia
If you are in serious debt and have explored all your potential relief options, with no qualifying success, declaring bankruptcy might be your best option. Understand that bankruptcy does have serious consequences, but sometimes these drawbacks outweigh current stress and debt issues. At a certain point in time, paddling up stream will become unmanageable and starting over is the best option.
Bankruptcy certainly has a negative social stigma about it and rightfully so in certain circumstances, but there many situations that don’t deserve this negativity. Financial difficulties can arise from uncontrollable events such as job loss, divorce, illness, serious injury, etc… Regardless of your need for declaring bankruptcy, below is information on how to claim bankruptcy in Australia.
*It is highly recommend you seek professional help when declaring bankruptcy to ensure you understand all the benefits and consequences clearly.
There are two main forms of bankruptcy for individuals; voluntarily or be made bankrupt by a creditor. The time needed for declaring bankruptcy can vary greatly but generally takes about a week when using a Registered Trustee for voluntarily bankruptcy.
Once you have decided bankruptcy is the option for you, you will need to start by filling in 2 main forms (shown below) and then a few other documents/forms stating that you have read all and understand all the information in regards to bankruptcy;
View all forms here
For official detailed information on declaring bankruptcy, visit ITSA (Insolvency & Trustee Service Australia) as it is the official governing body for the administration and regulation of personal insolvency in Australia. There is a wealth of information on their website which discusses the pros/cons and all relevant information on bankruptcy.
As there is an overwhelming amount of information, understanding what may be relevant to your individual needs may be hard to digest. Contacting a professional Registered Trustee is highly recommended as they will be your partner in helping you through the whole process of understanding and then declaring bankruptcy if need be.
Lastly, if you haven’t already done so, contacting your local non-profit financial counsellor may be wise. They can help you determine if declaring bankruptcy is the best option for you. This is a free, independent and confidential service.