|July 5, 2018||Comments Closed|
Most Australian’s have only seriously thought about bankruptcy when playing a game of Monopoly with their friends! In spite of this, there are about 13,000 individuals that declare bankruptcy every year in Australia. It’s extraordinary how easily people can go from being in a healthy financial position to dealing with a mountain of debt. In most cases, circumstances like loss of income, divorce, or unplanned medical expenses will induce serious financial issues within just a couple of months. In lieu of wrestling with these debts for many years and ignoring the elephant in the room, it’s much better to cut your losses and seek financial help as soon as possible.
A short time ago, the Australian Government proposed changes to bankruptcy laws that decrease the bankruptcy period from 3 years to 1 year. If this bill is passed, it will have a dramatic effect on the stigma related to bankruptcy and the financial repercussions that bankrupts will encounter down the road. Although many individuals understand the concept of bankruptcy, lots of individuals wouldn’t know where to start if they determined that declaring bankruptcy is the best option for them. To offer some insight, here are the top 5 tips on how to declare bankruptcy in Australia.
If you’ve decided that bankruptcy is the best choice for you, always speak with a registered bankruptcy trustee before making any concrete decisions. There is an enormous difference between a firm that charges you to declare bankruptcy and a legally registered bankruptcy trustee firm. Most of the time, bankruptcy firms are not the same as registered bankruptcy trustee firms, so make sure you get the right advice the first time so you can make the best financial decision. The right advice will not only assist you with your decision-making, but also put you in the best position to make a full recovery after you have been discharged.
If you’ve made the decision that bankruptcy is the best solution for your individual situation, there are two sets of documents that you will need to complete for you to declare bankruptcy:
In almost all bankruptcy proceedings, individuals must provide evidence that their claims are accurate by supplying an assortment of supporting documents. Generally, this will include the following:
It is paramount to note that failure to deliver accurate information or any effort to hide information that would otherwise be relevant to your bankruptcy proceedings is a severe offence that is punishable in a criminal court.
You must reply to each and every question in your bankruptcy paperwork accurately and truthfully to make sure it gets processed successfully. It is vital that you include the address information of all your creditors in the secured and unsecured sections of the bankruptcy paperwork. In the Debtor’s Petition, you’ll need to provide at the very least two types of ID. If you’re uncertain of which forms of ID are accepted, check the AFSA website (https://www.afsa.gov.au). If you don’t have enough space when addressing any questions, simply print out another copy of the same page and use it to fill in additional information. Additionally, be careful to include all assets sold in the last 5 years in question 33.
Before you submit your bankruptcy paperwork, inspect the date to ensure you are lodging it within 28 days of you signing it. At Bankruptcy Experts Ipswich, 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 call us on 1300 795 575 to ensure you get it right the first time. Alternatively, visit our website for further information: www.bankruptcyexpertsipswich.com.au.