Here at Debt Free Australia, we offer a variety of debt solutions tailored to your needs. If you wish to file for bankruptcy, we see it as our role to firstly educate you about bankruptcy. So, what would an experienced Bankruptcy Trustee suggest to Australians who want to become debt free? Here are three pieces of advice our in house bankruptcy trustee, Anthony Warner.
1) Pay off your bad debts first
Non tax-deductible debts, also referred to as “bad debt”, are the debts that you have to your name that will not deliver future return on your investment. Popular examples of this includes personal loans, car loans, or credit card debt. Mortgage interest on your house is also not tax deductible in Australia.
2) Understand what the role of a bankruptcy trustee is
A Bankruptcy Trustee is a personal insolvency practitioner who is authorised to administer bankrupt estates and Personal Insolvency Agreements. They must be registered with the Australian Financial Security Authority (AFSA).
Their duties vary greatly. They can convene a meetings of creditors, pay out mortgages, sell assets of the bankrupt estate, initiate or defend any legal proceedings against the bankrupt, assess the bankrupt’s income for compulsory income contributions, and more. This is very useful to know if you choose to move forward with bankruptcy.
3) Ask for help!
A bankruptcy trustee is required to give impartial and honest advice about bankruptcy. If you are considering bankruptcy, it is important to speak to a professional, as bankruptcy laws are very complicated and each case may have its own set of unique issues.
If you would like more advice from our in house bankruptcy trustee, Anthony Warner, then please contact Debt Free Australia. We offer a FREE initial consultation so that you can get unbiased, expert advice. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 676 598.