Personal Bankruptcy Solutions
Consider our Personal Bankruptcy Services to suit your budget and circumstances:
- Assist with completing bankruptcy forms from $400
- Act as your Bankruptcy Trustee from $80 per week (subject to statutory charges & recoveries)
Bankruptcy Video Library
Call Us Today to discuss your personal bankruptcy needs on 1800 98 10 70.
Bankruptcy can provide significant relief to people with:
- unmanageable levels of debt;
- assets valued at less than the statutory thresholds; and
- income less than the statutory thresholds.
Our consultants can provide expert advice and advise you on your best available options to enjoy immediate relief from debt.
Declaring yourself bankrupt could be a life changing decision and accordingly we strongly recommend that you invest 10 minutes to read this web site. If you are uncertain about any aspect you can call us for free initial advice on 1800 98 10 70. All bankruptcy information and advice will be provided free of charge during your initial phone call.
1. Bankruptcy alternatives
If you wish to explore alternative bankruptcy options please review the pages below. We offer a free financial assessment and that assessment will explore if you are eligible for any alternative solution . Our unique debt assessment will advise you of your best option and we will also explore if you can avoid bankruptcy, which may involve:
2. 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 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 Trustee will be appointed to handle and oversee the process.
3. Will my assets be sold?
Your Trustee will sell all of your assets except for the following assets which are protected:
- Most ordinary but not luxury household and personal goods
- Motor Vehicle (worth < $7,350)*
- Tools of Trade (worth< $3,600)*
- Superannuation (subject to limits)
There are some exceptions to these general principles.
- superannuation contributions can be clawed back in certain circumstances
4. What restrictions will be placed on me in bankruptcy?
Whilst you are a bankrupt, you may be subject to the following obligations/restrictions:
Your Bankruptcy term may be extended for up to eight years (if you fail to fully co-operate with your Trustee).
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!
5. 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).
Use our income contribution calculator to see if you will be liable for statutory income contributions.
6. How long will my Bankruptcy last?
Usually you will be bankrupt for 3 years (assuming you have filed your Statement of Affairs). However, the period that you are bankrupt could be extended up to 5 years or in some extreme cases up to 8 years.
- Learn how the period you are bankrupt can be extended for up to 5 years;
- Learn how the period you are bankrupt can be extended for up to 8 years;
If you fail to lodge your Statement of Affairs with your Trustee you can be bankrupt indefinitely.
7. Can I end my Bankruptcy early?
Normally bankruptcy lasts for 3 years (assuming you fully co-operate with your 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 an annulment 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).
8. 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 it is your only viable option we recommend that you first visit a financial counsellor. A list of counselling services available are listed on the Insolvency and Trustee Service Australia website.
9. How do I declare myself Bankrupt?
To become bankrupt will need to complete the necessary forms. These forms can be obtained from AFSA free of charge so you should never be charged to obtain them. Click here to download the forms. If you need help completing the forms, then we are happy to help by providing a personal service and help you complete the forms from as little as 4 payments of $99 each.
10. Can I appoint a Private Trustee of my choice?
Yes you can appoint a Private Trustee of your choice. Typically a Registered Trustee (in private practice) will charge a fee to act as the Trustee. Debt Free has a Registered Trustee who can offer this service subject to terms and conditions. Call us to discuss your circumstances so we can provide you with a cost estimate for this service.
11. Bankruptcy Forms
If you would like to download the bankruptcy forms FREE of charge. If you require help completing these forms we can provide that service from as little as $400.
As part of our service we will help you complete the forms and undertake a financial assessment to ensure that bankruptcy is your best option. We will also provide a bankruptcy kit which explains bankruptcy in more detail and also details your obligations as a bankrupt so you do not fall into the bankruptcy trap and have your bankruptcy extended up to 5 or 8 years.