June 27, 2018 0

Top 5 Tips on How to Declare Bankruptcy in Australia

Posted by:Charles Bosse onJune 27, 2018

Many Australian’s have only honestly thought about bankruptcy when playing a game of Monopoly with their friends! Despite this, there are somewhere around 13,000 individuals that file for bankruptcy each year in Australia. It’s astounding how rapidly people can go from experiencing a healthy financial position to tackling a mountain of debt. Generally, circumstances such as loss of employment, divorce, or unforeseen medical expenditures will lead to serious financial challenges within just a few months. Rather than wrestling with these debts for several 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 decrease the bankruptcy term from three years to 1 year. If this bill is passed, it will have a dramatic effect on the stigma associated with bankruptcy and the financial implications that bankrupts will experience down the road. Although lots of people understand the principle of bankruptcy, most people wouldn’t know where to start if they decided that declaring bankruptcy is the best solution for them. To provide some insight, here are the top 5 tips on how to file for bankruptcy in Australia.

  1. Get guidance from a registered bankruptcy trustee

If you’ve decided that bankruptcy is the best approach for you, always seek advice from a registered bankruptcy trustee before making any concrete decisions. There is a considerable difference between a firm that charges you to file for bankruptcy and a legitimately registered bankruptcy trustee firm. Most of the time, 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.

  1. Download the forms needed to file for bankruptcy

If you’ve come to the conclusion that bankruptcy is the best solution for your individual scenario, there are two sets of documents that you will need to complete for you to declare bankruptcy:

  • The Debtor’s Petition, which is a 3 page document (click on this link 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 on this link to download: https://www.afsa.gov.au/insolvency/how-we-can-help/forms-list/statement-affairs).
  1. Compile your supporting documents.

In nearly all bankruptcy proceedings, individuals need to provide evidence that their claims are correct by supplying an assortment of supporting documents. Usually, this will include the following:.

  •  Income statements and personal tax returns
  •  Company tax returns (if you are a company owner)
  •  Centrelink benefits statement (if relevant)
  •  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 is integral to note that failure to deliver accurate information or any effort to conceal information that would normally be relevant to your bankruptcy case is a severe offence that is punishable in a criminal court.

  1. Complete the bankruptcy paperwork.

You must reply to each and every question in your bankruptcy paperwork accurately and honestly to make sure it gets processed correctly. It is crucial 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 supply at the very least two types of ID. If you’re unclear of which forms of ID are accepted, 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 the same page and use it to fill out further details. Also, be careful to include all assets sold in the last 5 years in question 33.

  1. Submit your bankruptcy paperwork.

Before you lodge your bankruptcy paperwork, inspect the date to ensure you are submitting it within 28 days of you signing it. At Fresh Start Solutions Adelaide, we understand that all the paperwork can be a bit overpowering, so if you have any inquiries regarding your any of your answers, it’s best to give us a call on 1300 818 575 to ensure you get it right the first time. Alternatively, visit our website for additional information: http://freshstartsolutions.com.au/bankruptcy-adelaide.

 

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