Many Australians find themselves in unfortunate circumstances through no fault of their own, where they cannot repay their debts. If a Debt Agreement or a Personal Insolvency Agreement will not work for you, then you might consider declaring Bankruptcy.
It isn’t designed to be a punishment. Think of it more as a reset button to get your financial situation back on track.
With a decade and a half of experience in the industry we’ll help you on the path to a debt free future, in just 3 steps.
Bankruptcy should be considered as a last resort. When you contact us we’ll firstly work with you to see if there is an alternative debt solution that may be better situated to your circumstances.
Alternatives include a Debt Agreement, Personal Insolvency Agreement or an Informal Arrangement.
You can then make an informed decision about which option is best for you.
Bankruptcy is broken up into two periods: the ‘undischarged bankruptcy’ period that lasts for three years, during which time the restrictions imposed by the Bankruptcy Act apply. The second period is called ‘discharged bankruptcy’, which lasts for a further two years where no restrictions apply.
All bankruptcies are recorded permanently on a historic government database called the National Personal Insolvency Index (NPII).
Most unsecured debts can be cleared by bankruptcy (credit cards, personal loans, tax bills). However child support, HECS/HELP and fines cannot be included in bankruptcy.
Bankruptcy isn’t a punishment. However, it is reasonable that creditors should get some money if the person filing for bankruptcy is a high-income earner. During the ‘undischarged bankruptcy’ period (three years), if you earn more than the income threshold, you’ll be asked to make ‘bankruptcy income contributions’. Above the threshold, 50% of your after-tax wage goes to your trustee.
This is the process Beyond Debt follows to help clients who believe bankruptcy is the right solution for them.
The legislation surrounding bankruptcy is complicated. However, our consultants are happy to answer any queries. Remember, bankruptcy should be considered only as a last resort.