Bankruptcy Assistance

If you’re unable to pay off your mounting debts, you may feel that declaring personal bankruptcy is the only way to relieve the pressure of your financial situation. Experiencing extreme financial stress can be overwhelming, and you might not know what steps to take next.

It’s easy to feel very isolated during this time. That’s why it’s important to remember that there’s no financial problem that can’t be solved. Yet, declaring bankruptcy is a significant decision that will affect you for years to come. 

You’ll need to make sure you know what you’re getting into when considering bankruptcy, as well as the consequences. At Debt Busters, our financial experts can help you decide if it’s the right solution for you. Get in touch with us today and we’ll help guide you towards a brighter financial future.


  • What Is Bankruptcy?

    Bankruptcy is a legal process that releases you from most, if not all of your debt. It’s a way to achieve a fresh start while you regain your financial footing.

    Individuals can declare bankruptcy when they’re unable to pay their debts on time or in full. In addition, your creditors can take action to declare bankruptcy for you if your payments are delinquent. This legal action falls under the Bankruptcy Act of 1966 which is regulated by the Australian Financial Security Authority.

    However, without the right help, declaring bankruptcy can have significant consequences. You could experience loss of home and assets, job loss, travel restrictions, business restrictions, and more. You’ll want to tread carefully before deciding if bankruptcy is right for you.

  • What Happens When You Declare Bankruptcy?

    When you have been declared bankrupt, you agree to give up the control of your finances and assets to a Trustee. In exchange, you’ll be protected from legal action being taken against you by creditors. You also won’t be contacted by those creditors anymore.

    If you declare bankruptcy under the Australian Bankruptcy Act, a Trustee has the right to your assets. What is an asset? It’s anything of value that you own. These items might be sold to help repay your debts.

    You’re usually eligible to keep the following assets:

    • Ordinary household or personal items
    • Tools of the trade used to earn your income
    • Primary vehicle
    • Life insurance policies
    • Personal injury compensation
    • Funds in a complying superannuation fund


    Because you’ll lose control of most of your assets, it’s important to thoroughly research what items of yours are likely to be seized and which are protected. It is not uncommon for any of your property, tax refunds, investments, and motor vehicles which are not exempt to be sold to recover your debts.

    Your bankruptcy might also affect your employment. This is especially true if you work in certain occupations, hold a licence, or run your own business. Again, this is just another reason why it’s essential for you to speak to a debt professional before declaring bankruptcy.

  • Alternatives To Bankruptcy

    While bankruptcy can sometimes feel like the only step you can take if you find yourself unable to pay your debts, this isn’t usually the case. There could be a number of possible alternatives for your financial problems, including:

    • Debt negotiation – A financial professional will negotiate with your creditors on your behalf to come up with a temporary or permanent solution that you can afford.
    • Debt consolidation – Consolidate your debt with a consolidation loan or other type of debt solution that will often lower your payment or interest rate.
    • Informal payment arrangements – Aside from a legal agreement, you can also enter an informal payment arrangement with your creditors usually for a temporary period of time.
    • Debt agreements – Finally, many creditors are open to debt agreements where your debts are settled for less than you owe or the creditor agrees to new loan terms.

     

    Remember, bankruptcy is just one of the many formal options available under the Bankruptcy Act. It should be considered a last resort, not the first plan of action. If you’re not sure what option is right for you, talk to one of our friendly specialists at Debt Busters. We’ll help you find the best path to take to tackle your debt once and for all.

  • Is Bankruptcy Help Right For You?

    If you’re struggling to pay your bills on time and you’re worried about the calls from creditors, now is the time to take action. It can be intimidating to take the first step, but you’ll be glad you did it.

    As you can see from the information above, bankruptcy is a huge undertaking. It can be a life-changing, effective way to free yourself from a seemingly endless cycle of debt. At the same time, it might not be the right choice for you.

    If you’re on the fence about bankruptcy, talk to a financial professional. It’s best to act quickly if you’re on the verge of declaring bankruptcy. Get in touch with us now on 1300 368 322 to discuss the best way to manage your financial situation.

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Debt Busters is an Australian owned business which was founded in 2005 - since then we have been able to help thousands regain financial control.

Debt Busters prides itself on providing a dedicated Client Service Manager to work closer with you and provide a higher level of customised service about your situation.