Bankruptcy In Australia
If you are unable to pay your debts and cannot come to suitable repayment arrangements with your creditors, you may voluntarily lodge a petition to become bankrupt (called a debtor’s petition) or a creditor may take action to have you declared bankrupt by order of the Court (called a sequestration order). The ramifications of bankruptcy are extremely serious and there will be some residual effects.
For instance the National Personal Insolvency Index (NPII) will create a permanent record of your bankruptcy. The NPII is an electronic register of all personal insolvency cases. This register is available for access by any person and will include personal information about you, including your name, date of birth and address.
The number of bankruptcies in Australia declined 10.90% in 2013–14 (18,601) compared to 2012–13 (20,876). This is the lowest number of bankruptcies recorded in the financial year since 1995–96. These statistics suggest that Australians are exercising caution and responsibility when it comes to dealing with their personal finances. They also suggest that the Australian economy is prospering which is encouraging considering the setbacks of the Global Financial Crisis of 2008.
In the event that you are declared bankrupt a trustee will be appointed to administer your bankrupt estate. It is expected that the trustee adhere’s to certain professional standards whilst administering your estate.
In order to pay creditors, your trustee will:
• Sell your assets, including those you acquire or become entitled to during your bankruptcy
• Recover a percentage of the income you earn over a certain threshold which increases per the number of dependants
• Investigate your financial affairs and may recover property that you have transferred to someone else prior to your bankruptcy
During and after your bankruptcy, you have certain obligations and certain restrictions will be imposed on you.
Bankruptcy permits a person which is in a difficult or hopeless financial position to obtain relief from the pressure of creditors and be given an opportunity to make a fresh financial start.
If you are concerned about going bankrupt please contact 1800 621 308 or call us direct:
Kathleen – 0458 002 235
David – 0458 002 478