There are many myths about bankruptcy. You would be surprised how many
people go through bankruptcy every year, some 6,000 each year. Many people
choose it as their best option to get rid of overwhelming debt and free
themselves of so much stress. They then get a chance to recover. Many of
these people even dream of buying their own house one day. Some even go into
bankruptcy with a half interest in a house with their spouse. They don’t
necessarily lose it just like they don’t necessarily lose their car. They can still
travel overseas for a legitimate reason, including a holiday, although they will
need the Trustee’s permission. Nor will they necessarily have to pay any of
their wages into their bankruptcy – few do in fact, especially if they have a
family to support. Nor will they lose their superannuation or money paid for
personal injury. There is more to know, of course, and what is relevant to you
depends on your circumstances.
Before proceeding, review your debts, income, and assets. Consider seeking advice from a financial counsellor to explore all available options.
You can apply for bankruptcy if you are unable to pay your debts when they are due. There is no minimum debt requirement, but your situation must demonstrate insolvency.
You must submit a Bankruptcy Form through the AFSA portal. This includes a detailed statement of your financial position, including income, expenses, debts, and assets.
Once completed, submit the form online. AFSA will review your application and, if accepted, you will officially become bankrupt.
A registered trustee is assigned to your case. They will communicate with creditors, manage your estate, and ensure you meet your obligations.
During bankruptcy, you must provide financial information to your trustee, Make compulsory income contributions, Seek permission before travelling overseas, Inform your trustee of changes in circumstances.
