Most Australian’s have only truly considered bankruptcy when playing a game of Monopoly with their friends! In spite of this, there are roughly 13,000 people that file for bankruptcy each year in Australia. It’s uncanny how quickly people can go from experiencing a healthy financial position to dealing with a mountain of debt. Commonly, circumstances like loss of income, divorce, or unforeseen medical expenses will result in serious financial problems within just a couple of months. In lieu of wrestling with these debts for years and ignoring the elephant in the room, it’s far better to cut your losses and seek financial assistance as soon as possible.
In recent months, the Australian Government proposed changes to bankruptcy laws that reduce the bankruptcy duration from three years to 1 year. If this proposal is passed, it will have a remarkable impact on the stigma linked with bankruptcy and the financial consequences that bankrupts will encounter in the future. While lots of folks understand the notion of bankruptcy, most individuals wouldn’t know where to start if they determined that declaring bankruptcy is the best alternative for them. To give some insight, here are the top 5 tips on how to file for bankruptcy in Australia.
- Get advice from a registered bankruptcy trustee
If you’ve made up your mind that bankruptcy is the best alternative for you, always speak to a registered bankruptcy trustee before making any concrete decisions. There is a huge difference between a firm that charges you to file for bankruptcy and a legitimately registered bankruptcy trustee firm. In many cases, bankruptcy firms are not the same as registered bankruptcy trustee firms, so be sure you get the right advice the first time so you can make the best financial decision. The right advice will not only aid you with your decision-making, but also put you in the best position to make a complete recovery after you have been discharged.
- Download the forms required to file for bankruptcy
If you’ve decided that bankruptcy is the best alternative for your individual position, there are two sets of documents that you will need to complete for you to file for bankruptcy:
- The Debtor’s Petition, which is a 3 page document (visit this site to download: https://www.afsa.gov.au/insolvency/how-we-can-help/forms-list/debtors-petition).
- The Statement of Affairs, which is a 25 page document (click here to download: https://www.afsa.gov.au/insolvency/how-we-can-help/forms-list/statement-affairs).
- Compile your supporting documents.
In nearly all bankruptcy proceedings, individuals have to offer evidence that their claims are correct by supplying various supporting documents. Usually, this will include the following:.
- Income statements and personal tax returns
- Company tax returns (if you are a business owner)
- Centrelink benefits statement (if appropriate)
- Formal child support notices
- Any family law orders
- Any court orders
- Wills of any deceased estate of which you are the beneficiary
- All transaction statements from transferred assets over the last 5 years
It’s important to note that failure to deliver accurate information or any effort to conceal information that would otherwise be relevant to your bankruptcy case is a severe offence that is punishable in a criminal court.
- Complete the bankruptcy paperwork.
You must answer each and every question in your bankruptcy paperwork accurately and truthfully to ensure it gets processed correctly. It is vital that you include the address details of all your creditors in the secured and unsecured sections of the bankruptcy paperwork. In the Debtor’s Petition, you’ll need to supply at the very least two types of ID. If you’re unclear of which forms of ID are acceptable, check the AFSA website (https://www.afsa.gov.au). If you don’t have enough space when responding to any questions, simply print out another copy of that page and use it to fill in additional information. Moreover, be careful to include all assets sold in the last 5 years in question 33.
- Submit your bankruptcy paperwork.
Before you submit your bankruptcy paperwork, inspect the date to make sure you are submitting it within 28 days of you signing it. At Bankruptcy Experts Cassowary Coast, we understand that all the paperwork can be a bit complicated, so if you have any questions regarding your any of your answers, it’s best to contact us on 1300 795 575 to ensure you get it right the first time. Alternatively, visit our website for further information: www.bankruptcyexpertscassowarycoast.com.au.