During the recent financial crisis, there have been many families that have been under tremendous financial stress with job layoffs and in some cases, total financial loss. There has been a lot of speculation on bankruptcy inAustralia, but on analysis, the real reason is that people have lost control of their debts and are unable to repay their creditors.
Are Bankruptcies In Australia On The Rise?
To the common person on the street, bankruptcy is something terrible, which usually occurs to badly managed companies. Unfortunately, in reality, there are hundreds of ordinary people who have had to declare bankruptcy because they do not have any other means to keep their creditors at bay. Looking at the other side of the coin, bankruptcy inAustraliacould be looked on as a solution, giving you a chance to cut your debts, giving you some space to start fresh. However, there are certain conditions that must be met before you are eligible to declare bankruptcy inAustralia; you must be an Australian resident or you must have a running business. Fortunately, there are organizations that can help you fight this mess and help you to manage your debts successfully.
Debt Consolidation Is One Way To Go
In this scenario, you obtain the services of a debt manager who will go through all your finances, assess your assets and your liabilities, and come up with a plan before consolidating your debts. One of the most often used way to repay your debts is by getting a debt consolidation loan. In these cases, if you have declared bankruptcy inAustralia, you can take out one single loan, usually personal, to clear all your outstanding liabilities. You then have the opportunity to repay the loan at a lower interest rate than what you were paying, and also have the benefit of repaying just one loan with a longer repayment schedule.
Ways To Proceed When Declaring Bankruptcy
To start proceedings of bankruptcy in Australia, you have to file a petition at the district bankruptcy court, where they will make the arbitrary decision whether to extend your repayment period to pay off your debts or find another way. In Australia, there are many complicated legal issues involved when declaring bankruptcy and the best person to help is a legal expert. You have to inform the Insolvency and Trustee Service, Australia branch (ITSA) to fill out a debtor’s petition form, complete the statement of affairs form, who will have it reviewed by a committee; ITSA will appoint a trustee who will assess your assets and collate them. They may also provide you with instructions and advice on how you can repay your debts without causing undue stress to yourself and the family.