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Declaring Personal Bankruptcy in Australia

Bankruptcy is often seen as the last resort for people struggling with severe debt. There are a number of Bankruptcy regulations in place to deter people from declaring Bankruptcy as well as common misconceptions, but in some cases, the benefits of eliminating your debt will outweigh the potential restrictions temporarily imposed on your lifestyle.

At Revive Financial, we’re personal Bankruptcy specialists. Our team consists of fully qualified Chartered Accountants and Registered Bankruptcy Trustees. With years of experience, we have the skills and knowledge required to see you through your entire Bankruptcy process – from start to finish.


What is Bankruptcy?


Bankruptcy is the legal process where you declare you’re unable to repay your debts. In other words, you are deemed personally insolvent. A Registered Bankruptcy Trustee is appointed to your estate who will sell your assets to pay down your debts.

When declaring Bankruptcy, you have the option to choose your Bankruptcy Trustee. Engaging our in-house private Registered Bankruptcy Trustee provides you with the opportunity to:

  • Discuss your situation prior to being made Bankrupt,
  • Understand what’s involved during the Bankruptcy,
  • Gain comfort in the process, and
  • Make informed decisions based on the professional advice provided that may suit your financial needs.

3 Easy Steps to Declare Bankruptcy


Talk to a Professional

Speaking to a Revive Financial personal Bankruptcy specialist during a free consultation will help you understand your financial position and decide if declaring Bankruptcy is right for you.


Lodge Bankruptcy Forms

You’ll need to fill out and lodge two BAnkruptcy forms: Form 3 and Form 6. These forms can be obtained and lodged on the AFSA website or by your Registered Bankruptcy Trustee.

Confirm 1

Confirm Bankruptcy Number

You’ll officially be Bankrupt within 48 hours. This will be confirmed by a letter from AFSA with your Bankruptcy number. Your creditors will no longer be allowed to make claims against you or your property.


Check Out Our Bankruptcy eBook!

Our Bankruptcy eBook provides you with the information you need to find out if Bankruptcy is the right option for you. Learn about eligibility, if you can travel overseas and how Revive Financial may be able to help protect your assets during the Bankruptcy process.

Bankruptcy Regulations

Bankruptcy shouldn’t be seen as a punishment. Instead, it’s an opportunity for you to wipe the slate clean and start over. There are, however, a number of restrictions and regulations involved in personal Bankruptcy that you need to be aware of.

Bankruptcy and Your Income

When you declare Bankruptcy, there will be a threshold placed on your income. If you earn over the threshold amount, 50c in every dollar will be taken from you and used to pay Bankruptcy costs or divided among your creditors. If you earn less than the threshold, Bankruptcy won’t impact your income.

Bankruptcy and Travel

If you need to travel overseas while Bankrupt, you will need to apply through your Trustee. There is a non-refundable $150 application fee and a judge will approve or deny the application.

Bankruptcy and Your Credit File

Currently, Bankruptcy is noted on your credit file for a total of 5 years. If your Bankruptcy is extended for any reason, it will stay on your credit file longer (can be up to 8 years). Your name will also be noted on the National Personal Insolvency Index (NPII) for life.

Bankruptcy and Your Assets

In Bankruptcy, you’ll be able to keep property such as personal items, household furniture, tools and equipment for work, a car (up to a certain value) and your superannuation. Unfortunately, a Bankrupt is not legally allowed to own property – but there are ways you can keep it, depending on your situation.

Worried about how Bankruptcy will affect you? For more information, get in touch with us today to arrange a confidential consultation to discuss your options.

Get a Free 30 Minute Consultation

What Happens After Bankruptcy?

Bankruptcy has regulations and restrictions, but after you declare Bankruptcy you can still:

  • Travel overseas with permission from your Bankruptcy Trustee
  • Keep trading as a sole trader
  • Own a car up to a certain amount
  • Earn as much as you like, but you will be required to pay income contributions towards your bankrupt estate if you earn over a certain amount
  • Retain your home (under certain circumstances)

When Bankruptcy is Right For You

Bankruptcy should be considered a last resort. During your initial free 30-minute consultation with us we will determine if Bankruptcy is necessary for your situation – or if there is an alternative debt relief solution available. Some alternative solutions include an informal Debtstroyer Agreement or a formal Part 9 Debt Agreement.

Once we’ve assessed your financial situation and recommend the best way forward, you can make an informed decision about which debt relief solution is best for your circumstances.


“Very professional and understanding, took the pressure off me when I needed. Also very quick to finalise everything. Would definitely recommend them.”

What Makes Us Great


Registered Liquidator


Registered Bankruptcy Trustee


CPA and CA Qualified Accountants


Professional Members of TMA


Professional Members of ARITA


Rated 4.9 out of 5 on Trustpilot

Not sure if Bankruptcy is the right option for you? Get in touch with our debt specialists today to have your questions answered.

Get a Free 30 Minute Consultation

Bankruptcy Frequently Asked Questions

How Long does Bankruptcy Last?

Generally, Bankruptcy lasts for three years. However, depending on your circumstances, it can last for five or eight years.

Will Bankruptcy Affect my Credit Rating?

Once you are Bankrupt, your name will be listed on your credit file for 5 years and on the National Personal Insolvency Index (NPII) for life.

How Much Debt do I Need to Qualify for Bankruptcy?

The minimum amount of debt in which a Bankruptcy notice can be issued is $5,000. You should consider the Bankruptcy regulations and consequences involved before you decide to declare it. If you are only struggling with a small amount of debt, the impact Bankruptcy has on your life may outweigh the benefits of eliminating the debt.

What Happens to Your Debt when You Declare Bankruptcy?

Filing for Bankruptcy is the act of declaring to your creditors you don’t have enough money to repay the debts you owe. So when you file for Bankruptcy, a Bankruptcy Trustee is assigned to you to enforce a number of restrictions. These include taking possession of and selling your assets, garnishing your wages and limiting overseas travel.

This is all done in a bid to recover some of the money you owe to creditors. When the bankruptcy period is over, your debts are considered to be settled and creditors cannot pursue you for further payment of these debts.

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