How to File Bankruptcy in Australia

A neighborhood in Australia

Filing for bankruptcy may sound like an appealing way to keep your creditors away. However, you must not make this decision blindly unless you have considered other options such as debt agreement, direct negotiation with your creditors, mortgage refinance and debt consolidation. Once you file bankruptcy, you cannot workin the security industry and you cannot obtain certain licenses, such as a builder's license. Additionally, you must get consent from the court in order to travel overseas, borrowing money will be difficult and you cannot manage a company. The Insolvency and Trustee Service Australia, commonly referred to as ITSA is the government body that handles bankruptcy in Australia.

Things You'll Need

• Debtor's petition
• Statement of affairs
• Prescribed information
• Internet access

Instructions

Instructions

1. Declare intention to present debtor's petition. Visit the ITSA office in your local area and sign a statement declaring that you intend to petition for bankruptcy. Australian law allows a "cooling off" period of seven days during which a petitioner can reconsider his action. Seek financial advice, speak to creditors and consider alternative options during this period. You are not obliged to declare bankruptcy at the end of this period.

2. 

   Get a lawyer

   Hire a lawyer. Seek the services of a lawyer to help in the process of filing for bankruptcy. The lawyer will counsel you on the most appropriate steps to take and also ensure that you do not miss important information or reveal information that is likely to lead to legal penalties.

3. Get a trustee. Choose a trustee who will assist you through the filing process. The trustee will oversee the sale and distribution of your assets among creditors. Note that ITSA may choose a trustee for you if you do not get one.

4. 

   File a debtor's petition.

   Complete debtor's petition. Fill in the debtor's petition form available at ITSA offices or download it from the ITSA website. Fill in every required detail and add your signature and date in the presence of a witness.

5. Complete a statement of affairs. Download this form or get it from ITSA offices in your area. Provide accurate and correct information about your financial status. Indicate information such as all debts, income, and current and recently owned assets.

6. Sign prescribed information. Read the prescribed information and acknowledge that you have received, read and understood its contents by signing it. The form contains alternatives to bankruptcy, consequences of filing bankruptcy and information pertaining to your trustee.

7. 

   Forms can be faxed.

   File completed forms. Ensure that you have filled all required details in your debtor's petition, statement of affairs and prescribed information. Hand-deliver, fax, email or post the documents to ITSA.

8. Get a bankruptcy number. The official receiver will allocate you a bankruptcy number once your forms are accepted. Provide further information or documentation if requested by the official receiver.

References

• ITSA: Bankruptcy Overview
• Fox Symes: A guide to bankruptcy laws