Don’t Fight Financial Stress Alone, Declare Bankruptcy with Revive Financial and Get Your Life Back on Track
If you find yourself in a position where you are unable to pay your debts and cannot come to a suitable repayment arrangement with your creditors, you may decide to declare personal bankruptcy. Before you declare bankruptcy, you need to make sure you speak to an expert before making the financial decision, review every alternative first and understand what declaring bankruptcy means how it will affect your life. Bankruptcy does have serious consequences, but sometimes these drawbacks outweigh current stress and debt issues. At a certain point in time, paddling up-stream will become unmanageable and starting over is your best option.
Bankruptcy can help you wipe your debts and provide you with a clean slate, giving you the opportunity to start over. It currently lasts between 3 to 5 years. During the bankruptcy period, your creditors are not allowed to harass you for payment and all legal action against you will cease. You will be able to live your life free from debt stress and get back to what matters most.
Home Owner Bankruptcy Tips
As a company director, if you declare bankruptcy you will be unable to direct a company. You have no legal obligation to pay your company’s creditors unless you:
- Have given a personal guarantee to one of more creditors,
- Are found by the court to have breached a duty as a director, or
- Are found by the court to have not taken adequate steps to prevent your company from incurring debts while insolvent.
Alternative Options to Avoid Bankruptcy
Because of the negative social and financial consequences that are associated with being bankrupt, it is usually in your best interest to explore alternative options available to reduce your debts in an attempt to avoid bankruptcy. The main options available to you are:
- Debt Consolidation,
- Informal Agreement, or
- Debt Agreement.
You need to act quickly if you are being pursued for debts and you wish to avoid bankruptcy. Seeking advice before your finances get completely out of hand gives you the best chance at avoiding bankruptcy and implementing a solution which doesn’t have as many restrictions and regulations involved.
Home Owner Bankruptcy Tips
- Credit cards and store cards
- Personal loans and pay day loans
- Gas, electricity, phone and internet bills
- Overdrawn bank accounts and unpaid rent
- Medical, legal and accounting fees
- ATO debts
- Car loan
- Hire purchase or rent to buy (such as furniture or electronics)
- Court imposed penalties and fines
- Child support and maintenance
- HECS and HELP debts
- Debts you incur after your bankruptcy begins
- Unliquidated debts
The Effects of Bankruptcy on Your Life
- You can keep household goods and personal effects like your TV, computer and furniture of reasonable value,
- Your bankruptcy will appear on your credit report for five years and on the National Personal Insolvency Index (NPII) for life, making it difficult for you to obtain finance,
- You may lose some of your assets including your house and car worth more than the threshold limit,
- You can earn an unlimited amount however if you earn over the threshold, you will need to pay contributions to your Bankruptcy Trustee for your creditors, and
- You may need to continue to pay your Child Support, Centrelink and Higher Education debts, along with any court fees.
Let Us Help You With Personal Bankruptcy in Perth
Bankruptcy is a tough decision and should not be taken lightly. At Revive Financial, we will assess your financial situation to see if bankruptcy is the necessary course of action. We do this with a free 30-minute consultation, so we can understand your individual situation and recommend the best solution to get you back to financial stability.
Revive Financial will provide you a clear pathway to financial freedom so you can get back on track with your finances and focus on your life again. Our team 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 been helping individuals through the bankruptcy process in Perth and across Australia for years. To put all of your financial worries behind you, give our Perth team a call today on 1800 861 247.