Bankruptcy Assistance on the Sunshine Coast
Bankruptcy is a legal process that can be declared when you cannot pay your debts as they fall due. Bankruptcy comes under the Bankruptcy Act 1966 and is regulated by the Australian Financial Security Authority (AFSA). Once you have declared Bankruptcy, you give up control of your finances and assets to one of our in-house Bankruptcy Trustees in exchange for protection from legal action being taken against you by a creditor. Depending on your financial situation, there may be alternatives to bankruptcy such as an Informal Agreement, debt consolidation, a mortgage refinance or a formal Part 9 Debt Agreement.
You may be facing bankruptcy due to a relationship breakdown, job loss or emergency. At Revive Financial, we don’t judge and understand being in debt can happen to anyone. Fortunately, we can help you through the process as fast and as smoothly as possible so you can get back on your feet.
How Do You Declare Bankruptcy?
You are able to declare Bankruptcy either by yourself or by order of the court, following an application by one of your creditors.
- Debtor’s Petition. If you want to enter Bankruptcy voluntarily, you will need to lodge an application with the Australian Financial Services Authority (AFSA). You will also need to lodge a financial statement. Once lodged, these forms cannot be withdrawn.
- Creditor’s Petition. Any creditor who is owed $5,000 or more and is unable to reach an agreement with you regarding repayment of the debt can apply to the court for a sequestration order. If your creditor can show you have committed an act of Bankruptcy (failure to comply with a Bankruptcy notice), you will be declared Bankrupt.
Home Owner Bankruptcy Tips
What Happens When You Become Bankrupt?
Once you have declared Bankruptcy, your Bankruptcy Trustee will begin to investigate your financial affairs. They will notify your creditors of your Bankruptcy so they will cease to contact you. Most legal action which has been taken against you by your creditors must stop. If any of your creditors continue to contact you, all you need to do is notify your Bankruptcy Trustee.
There are, however, some debts which you must continue to pay during your Bankruptcy period. These include:
- Penalties and fines imposed by the court,
- Unliquidated damages from accidents, and
- Student assistance/supplement loans and HELP/HECS debts.
What Happens to Your Assets During Bankruptcy?
Most of your assets are not safe during Bankruptcy. They will be vested to your Bankruptcy Trustee so they can sell them to pay down your debts. In Bankruptcy, an asset is defined as anything of value you own, from your house, vehicle and tools. Some items you are able to keep include:
- Most of your ordinary household or personal items,
- Tools of trade used to earn an income up to a set limit,
- Your vehicle, up to a set limit,
- Most funds in complying superannuation fund,
- Life insurance policies,
- Compensation for a personal injury, and
- Centrelink payments.
What Are Your Responsibilities During Bankruptcy?
- Borrowing money. When you are looking for credit, purchasing goods on credit or incurring credit in any way which exceeds the set limit, it is an offence unless you inform the person you are dealing with that you are Bankrupt.
- Operating a company. You are still able to operate a company while Bankrupt but you must disclose your Bankruptcy status. You cannot be a director of a company or be involved in its management without the permission of the court.
- Overseas travel. You are required to notify your Bankruptcy Trustee of all changes of name and/or address. If you want to travel overseas, you need to obtain written approval from your Bankruptcy Trustee.
- Credit rating. When you become Bankrupt, your name will be listed on the National Personal Insolvency Index (NPII) forever. It will also be listed on your credit file for 5 years.
Bankruptcy Specialists on the Sunshine Coast
If you are in the situation where you may be facing bankruptcy, Revive Financial can help. We will assess your situation and talk you through your options. Our role as Bankruptcy Specialists is to help provide objective and practical solutions tailored to your situation so you can find relief from debt and financial pressures.
We offer an Australia-wide service and have been supporting individuals and businesses on the Sunshine Coast with bankruptcy for years. Our team consists of business debt and insolvency specialists including Chartered Accountants, ASIC Registered Liquidators, Bankruptcy Trustees and business advisors with a combined experience of over 43 years. We make every effort to make the bankruptcy process as transparent and manageable as possible.
For more information on bankruptcy and to see if bankruptcy is the right solution for you, contact our Sunshine Coast team today on 1800 861 247.