Supporting Individuals Through the Bankruptcy Process in Newcastle for Years
Declaring Bankruptcy can be seen as a way out if you’re drowning in debt. Bankruptcy is a legal process which can release you from most debts in the event you cannot afford to pay your creditors. When you enter Bankruptcy voluntarily it is referred to as debtor’s petition. Alternatively, your creditors can apply to the court to force you into Bankruptcy if you owe them a significant amount of money. This process is called a creditor’s petition.
If your debts are piling up and you’re unsure of your options, Revive Financial can help you declare bankruptcy fast so you can get back to financial stability and stop stressing over unmanageable debts.
Signs You May Need to Declare Bankruptcy
Before you throw your hands up in despair, check whether your finances are actually in trouble. There are a lot of alternative solutions to Bankruptcy such as Debt Consolidation, an Informal Agreement and formal Part 9 Debt Agreement which have fewer consequences than declaring Bankruptcy. Ask yourself:
- Are you unable to pay your mortgage?
- Do you have credit card debts you are unable to pay, or are you only paying minimum interest repayments?
- Are you using your credit cards to pay for necessities?
- Is your weekly income not enough to meet your day-to-day living expenses?
- Are your creditors calling you to recover their debts owed?
- Are you being chased by debt collectors?
If you answered yes to any of the above questions, then Bankruptcy may be the right solution for you. To determine exactly where you are financially, you should first inventory all of your assets. This includes superannuation funds, stocks, bonds, real estate, vehicles, savings accounts and non-bank account funds. You then need to collect and add up your bills and credit statements. If the value of your assets is less than the amount of debt you owe, declaring bankruptcy can help you out of your sticky financial situation.
Home Owner Bankruptcy Tips
- In exchange for giving up certain assets, you receive the protection of the Bankruptcy Act which prohibits your creditors from taking further action.
- During Bankruptcy, your creditors must stop chasing you.
- Bankruptcy usually lasts for 3 years and 1 day, but it appears on the National Personal Insolvency Index (NPII) for life and on your credit file for five years.
- Most unsecured debts are included in Bankruptcy, but some aren’t (such as HELP/HECS debt).
- At the end of your Bankruptcy period, you are released from your debts.
- Bankruptcy provides an opportunity for you to reduce your financial stress and start fresh, but it does come with consequences which vary depending on your personal situation.
What Does the Bankruptcy Process Involve?
The Bankruptcy process is a relatively simple process which comprises of four tasks.
- Complete a debtor’s petition form.
- Complete a statement of affairs form.
- Ensure you have read, understood and signed the prescribed information.
- Send your application to the Australian Financial Security Authority (AFSA).
Once you have submitted the required documents to AFSA, you will be declared bankrupt within 24-48 hours and be notified of this by AFSA. Your Bankruptcy Trustee will work with you to administer your financial affairs. This may include:
- Investigating your financial situation and trying to recover assets which you may have sold or transferred prior to Bankruptcy,
- Selling your assets, such as property or vehicles you own over a certain value to repay your creditors,
- Communicating with your creditors and assessing their claims, and
- Claiming part of your income to repay your creditors.
How Revive Financial Can Help You Through Bankruptcy in Newcastle
It can be hard to admit you need help getting out of debt, but that’s where we can help. Bankruptcy can be a difficult decision if you’re under such immense financial pressure, so it’s beneficial to consult a qualified expert to assess your financial position and determine the best solution. Our team at Revive Financial consists of business debt and insolvency specialists including Chartered Accountants, Registered Liquidators, Bankruptcy Trustees and business advisors with a combined experience of over 43 years. We have the skills and experience required to see you through your entire bankruptcy in Newcastle. For more information on Bankruptcy and to see if Bankruptcy is the right solution for you, contact your local Newcastle team today on 1800 861 247.