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VOLUNTARY BANKRUPTCY

Bankruptcy provides an opportunity for you to be released from your unsecured debt. Bankruptcy protects you, your income and your essential assets from creditors. Circumstances in your life may have made paying your debts unmanageable, and you are unable to reach, or afford, a compromise with your creditors. In these situations, you may seek the protection of the Bankruptcy Act.

DO I NEED TO BECOME BANKRUPT?

When you are experiencing financial difficulties and are unable to repay your creditors in a manageable way, it is essential that you consider all your options. There are times when the best, and sometimes only, option is Voluntary Bankruptcy.

IS THERE A MINIMUM OR MAXIMUM AMOUNT FOR BANKRUPTCY?

There are no minimum or maximum debt limits if you apply for bankruptcy. A creditor cannot make you bankrupt for debts less than $5,000.

HOW DO I BECOME BANKRUPT?

Following your decision to enter into Voluntary Bankruptcy, Agreement Consulting Services will prepare the necessary paperwork, which includes a “Statement of Affairs” and a “Debtor’s Petition”. When all the necessary paperwork is completed, and you have signed and dated it, we lodge it with the Australian Government’s “Insolvency and Trustee Service Australia” (ITSA). Once accepted by ITSA, you will be declared bankrupt within two working days and will be issued with a Bankruptcy Number. ITSA will advise you and your creditors of your Bankruptcy Number.

WHO HANDLES MY BANKRUPTCY?

The Australian Government “Insolvency and Trustee Service Australia” (ITSA) acts as Trustee for most bankruptcies in Australia. A trustee is a person who administers a bankruptcy. There are private bankruptcy trustees as well as ITSA as the Official Trustee in Bankruptcy.

HOW LONG AM I BANKRUPT FOR?

Once your bankruptcy has been accepted, you become an “Undischarged Bankrupt”. You will be an undischarged bankrupt for three years, during which time you will have some obligations. This period can be extended if you have not complied with your obligations.

WHAT HAPPENS TO MY DEBTS WHEN I GO BANKRUPT?

After bankruptcy, you are discharged from all debts covered by the bankruptcy.