Be Prepared: How Financial Planning Can Help During A Crisis

What Are the Steps If You Want to Declare Bankruptcy?

Declaring bankruptcy is tough, but it may be the right choice to make. If you're in debt and struggling to make ends meet, you might be considering this as an option. But before you decide to go ahead, there are some things you need to know. 

Check to See If You're Eligible

Before you apply for bankruptcy, you need to check if you're eligible. To declare bankruptcy in Australia, you must owe at least $10,000, and you must be living or have a business presence in the country. If you're eligible, you can begin the process of declaring bankruptcy.

Talk to a Professional

Declaring bankruptcy is a complex process, so it's essential to consult with a professional. They'll be able to help you understand the legal and financial implications of declaring bankruptcy. They can also help you assess your situation and determine if bankruptcy is the right option for you.

Go Ahead with a Filing

If you've decided to go ahead with bankruptcy, you need to file for it. You can do this by contacting the Official Receiver. The Official Receiver is a government-appointed person who will oversee your bankruptcy. You'll need to provide them with information about your finances, including your income, expenses and debts. Once you've filed for bankruptcy, you'll be protected from your creditors, and they won't be able to take legal action against you.

Prepare for Your Assets to Be Sold

When you declare bankruptcy, your assets may be sold to pay off your debts. This can include your house, car, and any other assets that you own. The Official Receiver will take inventory of your assets and determine which ones can be sold to pay off your debts. Keep in mind that there are some assets that are exempt from sale, such as necessary household items and personal effects.

Keep in Line with Restrictions

When you declare bankruptcy, there are some restrictions that you'll need to observe. For example, you won't be able to travel overseas without permission from the Official Receiver, and you'll have restrictions on obtaining credit while you're bankrupt. It's essential to follow these restrictions to avoid any legal issues.

What's the Bottom Line?

Declaring bankruptcy is a significant decision, and it's not one that should be taken lightly. If you're struggling with debt, it's essential to speak with a bankruptcy expert to determine the best course of action for you. If you decide to declare bankruptcy, follow the steps so you understand the process and what to expect. Remember, declaring bankruptcy is not the end of the world, and with the right guidance from your financial adviser, you can bounce back from your difficulties.

For more information, contact a company like Bankruptcy Advisory Centre.