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Dealing With Bankruptcy

Bankruptcy is a process where you are legally declared unable to meet your credit commitments. Bankruptcy lasts for a period of three years, with a trustee appointed to manage your affairs. Under a bankruptcy, most of your debts will be released and debt collectors cannot contact you.

  • A bankruptcy stays on your credit file for 2 years after your bankruptcy ends, or 2 years from the end date; whichever is the greater.
  • You are unable to be a director of a company during this time.
  • You assets maybe sold including your home to pay your creditors.
  • Bankruptcy may affect your ability to work in your chosen profession, which is always best to check prior to applying for bankruptcy.
 

Bankruptcy Solutions

The process of entering into and dealing with bankruptcy has a number of solutions available. How best to declare bankruptcy will depend on your own financial and personal situation. Once you are living under bankruptcy, you should also have a plan in place to meet the requirements, but also enjoy life. It doesn't have to be a disaster. We can help you make informed decisions and negotiate your bankruptcy terms.

Alternatives to a Bankruptcy

The alternatives you may consider in place of a bankruptcy could be:

  • Informal arrangement with creditors
  • Formalised arrangement with creditors - Part 9 Debt Agreement
  • Formalised arrangement with creditors - Part 10 Insolvency (PIA)
  • Debt Consolidation 

These are also services we can provide our clients if they have the ability to avoid bankruptcy. Understanding the process is what we are experts at, and we help clients avoid bankruptcy every year. It could all start with a free consultation we offer.

Annulment of a Bankruptcy

When you are under a bankruptcy you must stay as a bankrupt for a set period of time. The 3 year time frame has been approved to be reduced to 1 year though it is best to check when this has occurred.

While under a bankruptcy:

  • You may pay the debt in full to annul the bankruptcy
  • Pay out the bankrupt estate via refinancing a property. If the bankrupt is on title of the property then the bankrupt would need to come off title if that property is being used for the loan as lenders wont lend to a bankrupt.
  • Equity buy back - buy back property equity via ongoing payments to a trustee over time.

If you are stressed out with debt, let's start a discussion about your tailored solution.

Contact us today for a Free Debt Assessment Consultation on 1300 796 850 or submit an enquiry below.