WHAT YOU NEED TO KNOW

The below outlines the simple steps required to voluntary declare bankruptcy in Australia:

Step 1:

Firstly, it pays to obtain advice on your bankruptcy options and current financial situation from a qualified registered trustee in Bankruptcy. This will allow you to obtain all the facts and gain a true understanding of the Bankruptcy process and impacts. The Partners of Rapsey Griffiths are both registered trustee’s in bankruptcy.

Step 2:

Obtain a Debtors Petition (Form 4) and a Statement of Affairs (Form 6) from your proposed trustee or alternatively download from the Australian Financial Security Authority (AFSA). Complete the forms which will require all of your personal details, details of debts, assets, income and business operations (if any). If you are taking advice from a registered trustee, they will be able to assist in completing the forms.

Step 3:

Upon completion of the forms, they are required to be lodged with AFSA. AFSA is very strict when accepting the forms or rejecting them. Email us a copy of your forms and we will review and ensure they have been completed correctly before they are lodged.
If you want to use us as your private trustee, they will arrange for the forms to be lodged with AFSA. If not, you can lodge with AFSA.

Step 4:

Upon lodgement of the forms, AFSA will process and you will become bankrupt within approximately 48 hours. You will receive a letter from AFSA and your trustee advising of your bankruptcy number.

For more information on bankruptcy and personal insolvency review the resources below or contact us today.

PERSONAL RESOURCES

PERSONAL INSOLVENCY OVERVIEW

From sudden employment and over-reliance on credit to relationship breakdowns and ill health, there are many reasons why people suffer financial hardship and experience unmanageable debt. If an individual cannot pay their debts they may and haven’t been able to reach an agreement with creditors, they may declare themselves bankrupt. Bankruptcy can either be voluntary or involuntary.

CANCELATION OR ANNULMENT OF BANKRUPTCY

Annulment is effectively the cancellation of a bankruptcy. This article outlines the three ways a bankruptcy may be annulled.

ASSETS, DEBTS AND INCOME IN BANKRUPTCY

Many people do not know what will happen to their income, debts and assets once they become bankrupt. To assist in advising those on the brink of personal insolvency, here is a broad overview of the bankrupt’s entitlement to hold on to certain assets and income during the period of bankruptcy.

BANKRUPTCY AND EMPLOYMENT

While bankruptcy doesn’t directly affect your employment, it may have consequences if you hold various licences or qualifications including building, property management, liquor and financial brokerage licences.

BANKRUPTCY AND HOUSES

If an individual is made bankrupt, it is not necessarily the case that their house will be sold from under them. Given that in most bankruptcy cases we are dealing with the family home, it pays to have knowledge in this field to provide the best outcome for your client and hopefully “save the house”.

BANKRUPTCY FAMILY TRUSTS

Family assets are commonly protected by the use of a structure named a discretionary trust (sometimes referred to as a ‘family trust’). This type of trust provides a firewall of protection for family trust assets.

DISCHARGE OR FINALISATION OF BANKRUPTCY

The discharge of bankruptcy means that the individual is no longer bankrupt.
The date of discharge of bankruptcy will vary depending on the type of bankruptcy.

PERSONAL INSOLVENCY LEGAL ACTION

There are many ways a creditor can seek to recover payment of a debt from an individual who cannot, or refuses to, pay that debt. This article covers the rights and obligations of individuals facing debt collection and exposed to legal action and enforcement.

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Newcastle NSW 2300