Do you have a connection with Australia?

Australian Residents

Residents of Australia are free to file for bankruptcy if you have overwhelming debts which you cannot pay. The Official Receiver at ITSA has the discretion to reject a debtors’ petition if:

• it is not in the prescribed form;
• it is not accompanied by a Statement of Affairs;
• The Official Receiver is of the view that the Statement of Affair is inadequate;
• The Official Receiver is of the view that the debtor can pay their debts within a reasonable period of time; or
• The debtor doesn’t have a connection with Australia.

Non Residents

Non residents can only file for bankruptcy in Australia if they can demonstrate a connection with Australia.  To do this you will need to demonstrate:

• you have a dwelling in Australia;
• you have a business in Australia (whether in partnership or a sole trader).

If you cannot demonstrate a connection with Australia or the Official Receiver is of the view that your Statement of Affairs is inadequate or believes you can pay your debts (within a reasonable period) then your bankruptcy application may be refused.

More Information

For more information on the Official Receivers’ discretion to reject a debtors’ petition please view it here.

It is critical that you approach an organisation with the genuine expertise in bankruptcy.  You should enquire if the organisation has a Registered Trustee that practices in bankruptcy.

At Debt Free we have a private bankruptcy trustee who has a wealth of experience in practising bankruptcy, so you can be assured you will expert bankruptcy advice.

As that we can provide our advice in a timely manner, please have your details to hand when you call.  We will need details of the following:

• Your current payroll details (ie your net pay of a weekly or monthly basis)
• Up to date creditor statements for all debts (ie Citibank VISA $3,500, GE Money card $2,500, AMEX card $5,500  etc)
• Up to date balance for all secured loans, ie your house or car loans
• A list of your assets with estimated values.

If you have these details to hand we will be able to assess your situation quickly and efficiently. Alternatively, you can assess your finances yourself on-line using our debt advice model.

We are here to help people with friendly and reliable bankruptcy advice.  Our first phone call is FREE of charge and without obligation so don’t delay and call today! Our toll free line is 1800 98 10 70 and we are open 7 days a week from 9am to 5pm.

Take the right step today and get the bankruptcy advice you can trust. Call us toll free on 1800 98 10 70, our initial personal debt advice is FREE of charge and without obligation so you have nothing to lose. Get Debt Free today!

Bankruptcy Options

If you are considering bankruptcy, you should carefully assess your options, including your options to avoid bankruptcy.  If you file for bankruptcy without carefully exploring your options it may be too late.

What are my options?

You can file for bankruptcy voluntarily or you can be made bankrupt through the courts (ie an involuntary bankruptcy) which will initiate your bankruptcy. If you have debts which you cannot pay and you don’t have assets which can be sold to pay off debt, then we would recommend that you file for voluntary bankruptcy.

What is Voluntary Bankruptcy?

Voluntary bankruptcy is filing all of your bankruptcy forms voluntarily with ITSA.  Upon lodging these forms, ITSA will provide you with a bankruptcy number. This process is known as lodging a Debtors’ Petition.

Benefits of Voluntary Bankruptcy?
The benefits of voluntary bankruptcy is that you have the choice as to who you appoint as your Bankruptcy Trustee.  You have 2 choices, to either appoint:

• Official Trustee from ITSA
• Private Bankruptcy Trustee

If you do not nominate a Private Bankruptcy Trustee, then the Official Trustee from ITSA will automatically become your Trustee.

If you wish to appoint a Private Trustee, then you will need to obtain a consent to act from a Private Trustee. A Private Trustee will usually charge a fee to administer your bankruptcy. Debt Free has a Private Trustee available if you wish to consider the option of a private trustee. Call today to discuss your options on 1800 98 10 70.

Involuntary Bankruptcy

Involuntary Bankruptcy is the process of your creditors apply to court for a sequestration order (ie an order to have you made bankrupt).  This process is known as a Creditors’ Petition.  In this process the creditor has the option of appointing a Trustee of their choice.  This may be either the Official Trustee of ITSA or a Private Trustee.
Options to Avoid Bankruptcy

If you wish to avoid bankruptcy, consider your options which may include:

• A Debt Agreement; or a
• A Personal Insolvency Agreement.

Call us today to discuss your bankruptcy options FREE of charge and without obligation on 1800 98 10 70

The Insolvency Trustee Service Australia (ITSA) publish and process Bankruptcy Forms.

To become bankrupt you will need to complete and file the following documents:

• Statement of Affairs;
• Debtors Petition; and
• Prescribed Information

The bankruptcy forms can be downloaded from the ITSA web site here, FREE of charge.

Statement of Affairs

A debtors’ petition must be accompanied by a Statement of Affairs.  The Statement of Affairs must be completed accurately and truthfully, in that all personal details must be correct and you must truthfully disclose all assets and liabilities.  Failure to do so can result in your bankruptcy term can be extended.

Debtors’ Petition

A Debtors’ Petition must be completed and lodged with when filing for bankruptcy.

Prescribed Information

You will need to complete the prescribed information and lodge it together with your Statement of Affairs and Debtors’ Petition.

We can help you complete these forms for a fixed fee of $99, if you need assistance.

You also have the choice to appoint a private Registered Trustee. Debt Free has a Registered Trustee. If you don’t appoint a private Trustee, the Official Receiver at ITSA will become your Trustee.

Our friendly personal debt advisors will discuss your situation in a confidential manner. We have helped many clients around Australia with the decision regarding bankruptcy.

Lodging your Bankruptcy Application

You need to lodge your Bankruptcy Application with ITSA in your capital city.  If you want to appoint a private trustee you will need to obtain a consent to act from a Registered Trustee.  Debt Free has a Registered Trustee if you want your bankrupt estate managed by a private trustee. Alternatively ITSA publish a list of private trustees who you are free to approach.

Bankruptcy forms can be downloaded at any time.  If you need assistance in completing the forms call us toll free on 1800 98 10 70.

You should fully understand the restrictions which bankruptcy may place on your life before declaring yourself bankrupt.

If you can avoid bankruptcy by entering into a Debt Agreement or a Personal Insolvency Agreement, you may be able to avoid some of these restrictions which bankruptcy may place on your life.

How long will bankruptcy last?

In most cases bankruptcy will last 3 years, however, the 3 year time period only commences from the time you file your  Bankruptcy Statement of Affairs with ITSA.  Your bankruptcy term can also be extended by up to 5 years (so your bankruptcy term can become 8 years in some cases).

Learn how your bankruptcy term can be extended.

What other restrictions will I experience whilst bankrupt?

• You will have to surrender your passport and international travel will need to be approved in writing by your trustee
• You will have to disclose your bankruptcy status when applying for credit whilst a bankrupt
• You may need to disclose your bankruptcy status to your employer or industry association
• You may be liable to pay compulsory income contributions to your trustee
• You will not be able to own a car worth more than the limits
• You will not be able to own tools of trade worth more than the limits
• Your trustee may sell some of your personal effects if they are not protected
• Your bankruptcy trustee may seek to publicly examine you
• Your bankruptcy trustee will ask you to deliver your financial records for examination
• You will not be able to act as a company director
• You may unknowingly commit an bankruptcy offence under the Bankruptcy Act which may lead to prosecution.

Listed below are some offences described in the Bankruptcy Act:

• Failing to inform your trustee of your current address
• Failing to fully disclose all assets and liabilities in your Statement of Affairs
• Concealment of property
• Swearing a false affidavit
• Failing to attend Court when summonsed
• Refusal to provide information to your trustee
• Failing to provide truthful and straightforward answers in the course of an examination
• Disposal of an asset or creation of a charge over an asset whilst bankrupt
• Provides a false declaration whilst bankrupt
• Obtains credit over the prescribed value without disclosing your bankrupt status
• Failed to maintain proper books and records 5 years proceeding bankruptcy
• Engaged in hazardous gambling 2 years proceeding bankruptcy
• Left Australia without permission to defeat creditors
• Failed to maintain proper books and records whilst bankrupt

If your trustee becomes aware of any offence the trustee must report the offence to ITSA who may in turn refer the matter to the Director of Public Prosecution. Certain offences can carry prison sentences. Some offences can also lead to your bankruptcy being extended for up to 5 or 8 years. Click here to learn how your bankruptcy can be extended for up to 5 or 8 years.

However, before your creditors will agree, they will need to be satisfied that your circumstances allow you to qualify for a Debt Agreement.

You may qualify for a Debt Agreement if you do not have the means to repay your debts in full, ie you are insolvent.

We can help you establish if you qualify for a Debt Agreement and will put a proposal to your creditors on your behalf, ie you will not have to negotiate directly with your creditors!

If your Debt Agreement is accepted by the majority of your creditors (50% in value) then you will be protected against any further legal action your creditors may otherwise take.  For example, your creditors could not force you into bankruptcy or garnishee your wages if you are protected by a Debt Agreement.

We will help you work out precisely what you can afford to pay and then prepare a Debt Agreement Proposal to be sent to your creditors for vote.  This process can take up to 45 days after you have provided all of your details to us.  Once your creditors have agreed to your proposal you will pay the agreed contributions directly to us and we will disburse those funds (less our fees which will also be approved by your creditors) to your creditors on your behalf.  Interest on your debts will also be frozen.

Call today for free and impartial debt advice on our Toll Free line to see if you qualify for a Debt Agreement.

We’ll discuss your situation in a strictly confidential and empathic manner. Our debt advice professionals will discuss your needs free of charge and our advice will be provided without any obligation.

To get more detailed information on a Debt Agreement.

Remember our advice is free and without obligation,
so call us today toll free on 1800 98 10 70, you have nothing to lose!

To be eligible to propose a PIA you must be insolvent, ie you cannot pay your debts when they fall due.

Typically we recommend a PIA if you exceed the statutory thresholds.  If you exceed any of the statutory thresholds, then you cannot enter into a Debt Agreement and you may need to consider a PIA.  The statutory thresholds are:

• Unsecured debts exceed $84,484.40; or
• Assets available in bankruptcy exceed $84,484.40; or
• Income (after tax) exceeds $63,363.30 p.a.

A PIA is a legally binding agreement with your creditors which must be approved by them.  We will usually recommend a PIA over a 3 to 5 year term.  The time period of your PIA will vary depending on your circumstances, ie your income & household expenditure and the level of debt.  We will help you formulate a proposal to be put to your creditors.  Typically creditors will accept less than 100% of their debt under a PIA. The interest on your debts will also become frozen once the PIA had been accepted.

Once approved by your creditors, a PIA will protect you against any further legal action.  For example if you are in a PIA, then no other creditor will be able to force you into bankruptcy.

We will help you assess what you can afford to pay into a PIA and we will guide you as to the likely term of your PIA.  With a PIA a physical meeting of creditors is required (you may attend by phone in certain circumstnaces).  Please note that only a Registered Trustee or Solicitor can call a meeting of creditors for you to propose a PIA.  At Debt Free we have a Registered Trustee who can do this for you.  At the meeting of creditors, your creditors will assess and vote upon your PIA proposal.  Not all creditors need to vote in favour of the proposal however, at least 75% (in value) and at least 50% (in number) of those creditors who vote at the meeting must vote in favour of the proposal for it to be accepted.

Once your PIA has been approved, the interest on your debts will be frozen. You will only have to make one single payment each month into your PIA. We will distribute the funds to your creditors after we deduct our fees and expenses which will also be approved by your creditors.

Call today for free and impartial debt advice on our toll free line 1800 98 10 70. We will help you estbalish if you are eligible for a PIA. We’ll discuss your situation in a strictly confidential and empathic manner.

Our debt advice professionals will discuss your individual circumstances free of charge and without obligation.

Remember our advice is free and without obligation,
so call us today toll free on 1800 98 10 70, you have nothing to lose!

If you only have one or two creditors we recommend that you first approach your creditors directly and try to negotiate an informal payment arrangement.  If you have more than two creditors negotiating an informal arrangement may be more difficult and you may need to consider a formal arrangement with your creditors like a Debt Agreement or a Personal Insolvency Agreement.   A Debt Agreement or a Personal Insolvency Agreement will bind all creditors to the arrangement.

Typically creditors may consider an informal arrangement over 12 to 24 months.  If you need more than 24 months to pay your unsecured debts, you may be insolvent and you may need to consider a formal arrangement like a Debt Agreement or a Personal Insolvency Agreement.

We can help you prepare a budget to see how long you need to repay your debt.  and you will pay us an amount each month which we will pay to your creditors on your behalf.

Call today or apply on-line to see which product is appropriate for your circumstances.  We’ll discuss your finances in a strictly confidential and professional manner. Our debt advice professionals are ready to help you today and our service is without obligation.

Remember our advice is free and without obligation,
so call us today toll free on 1800 98 10 70, you have nothing to lose!

Debt Consolidation can be structured in several ways.

Firstly, you can apply for a Debt Consolidation. To be eligible for a Debt Consolidation loan, you will need to be able to service to loan repayments.  We recommend that you approach a reputable financial institution or finance company.  We recommend that you shop around for a low interest rate.  A Debt Consolidation loan is similar to a personal loan as they are usually unsecured loans.

If you cannot obtain a Debt Consolidation loan, you may need to consider a  Debt Agreement or a Personal Insolvency Agreement. A Debt Agreement or a Personal Insolvency Agreement in effect consolidates unsecured debts.  How it works is that instead of paying your individual creditors separately you would make a regular payment to us as your Debt Agreement Administrator or Trustee and we would distribute that money (less our fee) to your creditors.  You must first qualify for a Debt Agreement or a Personal Insolvency Agreement.

So if you are struggling to pay unsecured debt and you cannot get a Debt Consolidation Loan, call us today to see if you qualify for a Debt Agreement or a Personal Insolvency Agreement.

To get more detailed information on debt consolidation.

Remember our advice is free and without obligation,
so call us today toll free on 1800 98 10 70, you have nothing to lose!