Bankruptcy is a procedure that allows an individual to declare their bankruptcy. However, personal bankruptcy differs from jurisdictions to jurisdiction. The process of declaring bankruptcy involves filing a bankruptcy petition in a district bankruptcy court. This could mean either you will be given more time period to repay your entire debts or your debts will be legally discharged. However, it all depends upon under which section you choose to file your bankruptcy. Bankruptcy simply means a legal solution to reduce debts or eliminate them completely so that you can start a fresh.
What to Do If You Are Bankrupt in Australia?
If you are in a situation where you are neither able to manage your debts or arrive at a favourable agreement with your creditors, then the best solution is to file for bankruptcy. If you are bankrupt inAustralia, you can voluntarily submit a petition for declaring bankruptcy. The most important criteria for declaring bankruptcy inAustralia, is you must either be an Australian resident or should be operating an Australia-based business. If your petition is approved, then the ITSA (Insolvency and Trustee Service Australia) will appoint a trustee to collect your assets, who will also provide you with specific instructions on how you will be required to repay your debt.
What is The Procedure for Declaring Bankruptcy in nsw?
Get in touch with your nearest Insolvency and Trustee Service Australia (ITSA) branch and inform them about your decision to declare personal bankruptcy.
Get a debtor’s petition form, which requires you to provide general information such as your name, address, contact details, etc.
You will also have to complete a statement of affairs form wherein you will be required to give specific information about your employment, debts, finances, etc.
Mail both the completed forms together to the ITSA within 28 days.
Your forms will be reviewed by the ITSA before they determine whether you should become bankrupt.
What Are The Australian Bankruptcy Rules?
Either you as a debtor can file for bankruptcy in nsw or several of your creditors can file for bankruptcy through creditors petition.
You need not be a citizen ofAustralia, but you have to be present in the country at the time of declaring bankruptcy. You could be temporary resident or involved in partnership in an Australian business or operating your own business inAustralia.
Bankruptcy is generally granted for three years and can be extended to 5 or 8 years.
You have to complete and file two forms; debtor’s petition form and statement of affairs.
You could be released from bankruptcy after three years of declaring bankruptcy.
The ITSA lays down certain conditions that you strictly need to abide when the bankruptcy is in operation.
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