Here at Debt Free Australia we always try to find the least severe financial solution before we consider bankruptcy. With that philosophy in mind we offer a free financial assessment to explore possible alternatives before committing to Bankruptcy. However, if you wish to file for bankruptcy, we see it as our role to firstly educate you about the consequences. There are serious ramifications to declaring bankruptcy in Australia, and we have detailed the top 3 below.
1) Loss of Assets
A consequence of bankruptcy is that you may lose your assets. If you have a house or a car worth more than $7,900, it will be sold by your Trustee.
2) National Record
Your bankrupt status will have a permanent record on the National Personal Insolvency Index (NPII). This is managed by the Australian Financial Security Authority (AFSA).
3) 3 Year Minimum
The standard period of a Bankruptcy is 3 years in Australia which begins from the day your application is accepted. However, in certain circumstances, this period may be extended to 5 or 8 years. Below are three examples of reasons why your bankruptcy may be extended:
- Failing to attend a meeting of creditors
- Not disclosing an asset or liability to your Trustee
- Leaving the country without permission from your Trustee
If you are looking for advice personally tailored to your situation about any debt relief solutions, then please contact Debt Free Australia. DFA are passionate about helping Australians get out of debt and prepare for a better financial future. Please contact us on our 24/7 toll-free hotline on 1800 462 767 to speak to one of our friendly and professional debt relief consultants.