Consider your Options
Step 3 - Consider your Bankruptcy Options
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.
