The Best Way To File Bankruptcy In Australia

If you are overwhelmed with debt and realize the futility of taking out more loans

, then the only choice you are left with, is declaring bankruptcy. But, make this choice only if there are no other viable options.

Understanding What Bankruptcy Means

National Personal Insolvency Index is a permanent online public record that anyone can access after paying a fee. Your name takes permanent residence in this record. As a general rule, you will be bankrupt for three years. But the period is extended in extenuating circumstances. Your creditors are intimated of the situation. The harassment stops. The court will appoint a trustee to your case. It is the job of your trustee to sell all your assets so your creditors are repaid. There are however certain things you will be allowed to keep. You will find information on this in the ITSA (Insolvency and Trustee Service Australia) official website. The trustee will also investigate your financial situation and has the right to recover any funds or assets you may have transferred to another person. These too, go towards repaying your creditors.

Declaring Yourself Bankrupt in Australia

The process involves some paper work. You can either obtain the necessary forms from the ITSA website or get the help of a registered trustee. The forms include the debtors petition, the statement of affairs and some acknowledgments that need your signature. A professional with knowledge of the proceedings can save you a lot of anguish. Every situation is different and most of these professionals know how to handle your case with the sensitivity you deserve.

You can choose to appoint your own registered trustee. You must first obtain the consent of the concerned trustee. This must be done at the time of lodging your bankruptcy claim. He/she will know how to go about it. While assessing and taking care of estates, trustees are expected to follow certain norms provided in legislation. Also, know that your creditors can at point of time, can choose to change your trustee. Even if you do not choose your own, the ITSA will appoint one for you.

Reconsider Your Options

By declaring bankruptcy in Australia, you will be permanently impairing your credit record. Are you sure you can live with the implications? You will find that all borrowing options are closed to you. This could last for 3-7 years depending on factors that your trustee will explain to you. A part of the money you earn during this period goes towards repaying your loans. Another factor you need to consider is the guarantor. If you have a guarantor then, when you declare yourself bankrupt, this person has to pay off your debts. Now that you know what you are in for, you are in a position to make an informed decision.

by: Debt Mediators

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