It is not easy to declare yourself for bankruptcy and for that matter, it is not something that needs to be rushed. Although declaring yourself bankrupt could get rid of all your unsecured debt, there are certain consequences you need to know before you make any hasty decisions. Before you file for bankruptcy in Australia, it is crucial to weigh your options carefully and seek expert advice.
Read on the four paramount steps you need to take before you file for bankruptcy in Australia.
Carefully assess your options
Before you file for bankruptcy in Australia, you need to consider all the options in every angle. You should not take your decisions for granted and assume filing for bankruptcy is a simple matter. As a matter of fact, filing for bankruptcy should be your last resort. The first thing to do is to talk with your creditors on how you can make payments or formally via a personal insolvency agreement or debt agreement. If truly you can’t manage to pay your debt and you don’t own any assets which will be disposed in bankruptcy, then the best option for you is voluntary bankruptcy.
Are you eligible?
It is also important to find out the criteria for bankruptcy. You first of all need to be insolvent and you must be living in Australia when filing for bankruptcy. The AFSA – a government agency, will first assess your applications to determine if you’re insolvent. The first thing that the agency will do is to check if you are in a position to clear your debts in full within the stipulated time. Another thing, the agency will review your address to confirm if it is legit. For your application to be approved, your address should be from Australia. If you are an Australian national but you are living abroad, you will have to return to Australia to apply for bankruptcy.
Get expert advice
To get bankruptcy help, you need to seek for advice from a registered bankruptcy trustee. A bankruptcy expert knows the dos and don’ts of filing for bankruptcy in Australia. As mentioned earlier, filing for bankruptcy is a complex process and hence you need to talk to a qualified and experienced expert. When talking to the bankruptcy expert trusted, ensure that you disclose your situation fully. If you don’t disclose all the relevant information or if you hide your assets, your bankruptcy may be prolonged up to eight years instead of the usual 3 years. If you give full details about your finances and assets, an expert will able to find the best solution for your situation.Read More at Debt Mediators
Complete and lodge your bankruptcy forms
Lastly, make sure that you complete and lodge your bankruptcy forms with the AFSA. To file for bankruptcy in Australia, you need to fill the statement of affairs, debtor’s petition and prescribed details. Take as much time as you need, to fill out these forms to ensure everything is correct.
Last but not least, if you are looking for bankruptcy help Australia market has for you, you can get help from Debt Mediators Australia. Debt Mediators Australia will help you file for bankruptcy in Australia and ensure your debts are cancelled. For more information on how to get help, go to https://www.debtmediators.com.au/bankruptcy/