Filing bankruptcy Brisbane may be your last and best option when:
- Your financial insolvency cannot meet your debts
- Your creditors are not open to suitable and reasonable arrangements
Bankruptcy laws in Australia are specifically designed to help people who are financially insolvent to repay their debts. Filing for bankruptcy is a straightforward process. However, the consequences of the declaration of bankruptcy are the things you need to consider.
Forms have to completed and lodged with a Registered Trustee or the Australian Financial Security Authority (AFSA) when claiming for bankruptcy. The process can be simple but consulting with a financial counsellor before filing is highly recommended. A financial counselor is a right person to make the process less concerning and problematic.
Declaring bankruptcy is a process that needs to complete three main forms before they are lodged with AFSA. These forms can be obtained from either a Registered Trustee or AFSA.
The three forms consist of:
- Debtor’s Petition form provides the outline for the things you need to claim to justify the declaration of bankruptcy
- Statement of Affairs form lists the specific details for the filing of the bankruptcy
- Acknowledgement forms where you need to affix your signature to confirm that you have read, received, and understand everything you have declared on the two previous forms.
Most people find the process of bankruptcy filing simple and straightforward. The bankruptcy period will last for three years if you fully cooperate with your Registered Trustee. However, your bankruptcy period can be extended between five to eight years in the presence of extensions and complications from your part.
The Consequences of Filing for Bankruptcy
You have to ask yourself if filing for bankruptcy will help you. While declaring bankruptcy may bring instant relief from your creditors, the drawbacks can be more than you bargain for.
A declaration of bankruptcy will stop your creditors from hounding you on your unpaid debts. However, penalties and fines imposed by the court and child support are sums that you need to pay as they are not exempted from the rules of bankruptcy.
Another consequence is home repossession by the bank. If your home is currently mortgaged with a bank, failure to meet the mortgage payments will automatically allow the bank to repossess your home. The full repayment of the debt also falls on co-guarantors or co-borrowers of the loan released to you. The only way for your co-borrowers to avoid paying the full debt is for them to declare bankruptcy as well.
Your credit report will also be seriously affected by the declaration of bankruptcy. For seven years, no financial or credit institutions will loan you money because of the bankruptcy record attached to your credit record.
These are the issues you need to seriously consider before you declare bankruptcy.
Do you need to file for Bankruptcy?
The declaration of bankruptcy is a formal way of admitting that your debts have gotten out of control and you are unable to pay them. While bankruptcy has serious consequences, most people are ill-informed about the process.
For most people, declaring bankruptcy is seen as bad. However, bankruptcy can sometimes offer the best solution for people unable to meet their debts.
Are you in the situation where not declaring bankruptcy means putting yourself deeper into debt? NR Consulting help file bankruptcy in Brisbane.