June 27, 2018 0

Top 5 Tips on How to File For Bankruptcy in Australia

Posted by:Charles Bosse onJune 27, 2018

Most Australian’s have only honestly thought about bankruptcy when playing a game of Monopoly with their mates! In spite of this, there are somewhere around 13,000 individuals that file for bankruptcy yearly in Australia. It’s astonishing how fast individuals can go from being in a balanced financial position to confronting a mountain of debt. Commonly, situations like loss of work, divorce, or unexpected medical expenditures will lead to serious financial challenges within just a couple of months. Instead of wrestling with these debts for many years and ignoring the elephant in the room, it’s far better to cut your losses and seek financial guidance immediately.

Not long ago, the Australian Government proposed changes to bankruptcy laws that decrease the bankruptcy term from 3 years to 1 year. If this bill is passed, it will have a powerful impact on the stigma associated with bankruptcy and the financial penalties that bankrupts will experience down the road. Although lots of folks understand the concept of bankruptcy, most individuals wouldn’t know where to start if they decided that filing for bankruptcy is the best alternative for them. To offer some insight, here are the top 5 tips on how to declare bankruptcy in Australia.

  1. Get guidance from a registered bankruptcy trustee

If you’ve decided that bankruptcy is the best solution for you, always seek advice from a registered bankruptcy trustee before making any concrete decisions. There is a huge difference between a firm that charges you to declare 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 help 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 made the decision that bankruptcy is the best choice for your individual scenario, there are two sets of documents that you will need to complete if you want to declare 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 (visit this site to download: https://www.afsa.gov.au/insolvency/how-we-can-help/forms-list/statement-affairs).
  1. Compile your supporting documents.

In almost all bankruptcy cases, individuals need to present evidence that their claims are correct by supplying an assortment of supporting documents. Normally, 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 very important to note that failing to supply accurate information or any attempt to conceal information that would normally be relevant to your bankruptcy proceedings is a severe offence that is punishable in a criminal court.

  1. Complete the bankruptcy paperwork.

You must answer each question in your bankruptcy paperwork accurately and truthfully to make sure it gets processed successfully. It is imperative that you include the address information of all your lenders in the secured and unsecured sections of the bankruptcy paperwork. In the Debtor’s Petition, you’ll need to supply at least two types of ID. If you’re uncertain of which forms of ID are acceptable, 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 extra details. Furthermore, be careful to include all assets sold in the last 5 years in question 33.

  1. Submit your bankruptcy paperwork.

Before you submit your bankruptcy paperwork, inspect the date to ensure you are lodging it within 28 days of you signing it. At Fresh Start Solutions Gold Coast, we understand that all the paperwork can be a bit overpowering, so if you have any concerns regarding your any of your answers, it’s best to call us 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-goldcoast.

 

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