Welcome to Debt Free’s bankruptcy information.
You will find some general information about bankruptcy. We also provide bankruptcy forms click here to download the bankruptcy forms FREE of charge. If you need help completing these forms we can provide that service for a fixed fee of $99.
We also offer the service of a Private Registered Bankruptcy Trustee. Call for a fee estimate today if you have decided to go bankrupt.
All bankruptcy information and advice will be provided free of charge during your initial phone call.
1. What is Bankruptcy?
Bankruptcy is a legal process for individuals who cannot pay their debts as they fall due. If you are unable to avoid bankruptcy, it will last for 3 years (if you fail to truthfully disclose your financial position and to fully co-operate with your Bankruptcy Trustee in the form of a Statement of Affairs). At the end of your bankruptcy you will be released from the debts which you had incurred before you entered into Bankruptcy. You will not be released from debts which you may incur after you have been made bankrupt and some debts such as fines and child support survive your Bankruptcy (in other words you will not be released from these debts).
A Bankruptcy Trustee will be appointed to handle and oversee the process. Your Bankruptcy Trustee will sell all of your assets except for the following assets which are protected:
*amount current as at September 2009
Whilst you are a Bankrupt, you may be subject to the following obligations/restrictions:
Bankruptcy should be looked upon as a last resort. Call Debt Free today to see if our highly qualified team can help you avoid bankruptcy with a more beneficial financial solution. The initial phone consultation is free but the results can be life changing!
*amount current as at September 2009
2. Will I be liable for compulsory income contributions?
If you are made bankrupt you may be liable to make compulsory income contributions for the duration of your Bankruptcy (3 to 8 years). To enquire if you would be liable to make compulsory income contributions please complete the information on the Bankruptcy Income Contribution Calculator.
3. How long will my Bankruptcy last?
Usually a bankruptcy will last for 3 years (assuming you have file your Statement of Affairs). However, your bankruptcy can be extended up to 5 years or in some extreme cases up to 8 years.
If you fail to lodge your Statement of Affairs with your Trustee you can be bankrupt indefinitely.
4. Can I end my Bankruptcy early?
Normally a Bankruptcy lasts for 3 years (assuming you fully co-operate with your Bankruptcy Trustee and have fully disclosed your circumstances in your Statement of Affairs). If you wish to bring your bankruptcy to an end earlier you can put forward a proposal to your creditors. Any early termination proposal would need to put your creditors in a better position than they would be if your bankruptcy continued (in other words they will receive a higher dividend under your early termination proposal than if your bankruptcy ran its complete course).
5. Can I declare myself Bankrupt?
Yes but before you decide to declare yourself Bankrupt, you should first call us on our Toll Free phone line to see if you can avoid bankruptcy. If Bankruptcy is your only viable option we recommend that you first visit a financial counselor. A list of counseling services available are listed on the Insolvency and Trustee Service Australia website.
6. How do I declare myself Bankrupt?
To become bankrupt will need to complete the necessary bankruptcy forms. These bankruptcy forms can be obtained from ITSA free of charge so you should never be charged to obtain them. Click here to download the bankruptcy forms. If you need help completing the forms, then we are happy to help for a fixed fee of $99.
7. Can I appoint a Private Bankruptcy Trustee?
Yes you can appoint a Private Bankruptcy Trustee. Typically Private Bankruptcy Trustees will charge a fee to act as the Trustee. Debt Free has a private Bankruptcy Trustee who can offer this service. Call us to discuss your circumstances so we can provide you with a cost estimate.
