Business & Personal
We are here to guide you
(For debt over $75,000)
Bankruptcy is a legal process that will clear most (if not all) of your debts. It can offer you a financial fresh start. We can deal with all the bankruptcy paperwork quickly and efficiently over the phone. It is however important to understand the consequences of bankruptcy and work out if bankruptcy is right for you. Get in touch with us to find out what you need to know.
What is bankruptcy?
Bankruptcy is a legal process which gives you a financial fresh start.
In bankruptcy, a “Trustee” is appointed to deal with your creditors and manage your bankruptcy. If you have any substantial assets the Trustee will look to sell these assets for the benefit of your creditors. There are however a number of assets which are protected from bankruptcy and cannot be sold by a Trustee – these include your household effects and a vehicle you use for transport (provided the vehicle is of moderate value). The standard bankruptcy period lasts for 3 years and during that time, if you earn a high income, you may be required to pay some amounts to your trustee.
Many thousands of Australians each year choose to go bankrupt voluntarily by filing a Debtors Petition. When you have all the facts, you may realise that bankruptcy is really not as bad as you think. Bankruptcy is not intended to be a penalty, it is intended to give you a fresh start. Give us a call to discuss any questions you may have.
There are a number of myths about bankruptcy which are either completely untrue, or only apply in rare situations. These include myths such as:
- I won’t be able to travel overseas
- My employer will be told of my bankruptcy
- My family and friends will find out
- I will never be able to borrow again
- I can’t be in business or self-employed
- I will lose my car
- All my future income will go to paying off my debts
A number of these myths are addressed in our FAQ section however the best way to find out what is fact and fiction is to give us a call and discuss your specific situation. As we say above, when you have all the facts, you may realise that bankruptcy is really not as bad as you may think. Many thousands of Australians each year choose to go bankrupt voluntarily. Bankruptcy is about letting you hit that “reset” switch and starting over financially.
How to apply/claim for bankruptcy?
There are certain eligibility criteria. These include the need to be insolvent (be unable to pay your debts) and either be present in Australia or have a requisite connection with Australia. It is then a matter of completing the relevant government forms accurately and appropriately and then filing those documents. At Worrells we are able to assist you in answering any questions you have around bankruptcy and can complete all the required forms for you.