Voluntary bankruptcy
When you cannot pay your debts having explored every alternative solution, you may consider filing for voluntary bankruptcy. Bankruptcy is a legal process that can remove accountability from your debts, allowing you to make a fresh start, but doesn’t come without consequence.
Speak with a free financial counsellor by contacting the National Debt Helpline on 1800 007 007 before filing for bankruptcy to ensure you have explored all alternative options.
Consequences of bankruptcy
- May affect your employability, income, and business.
- Limits overseas travel.
- You will be on the National Personal Insolvency List (NPIL) forever.
- You will have difficulty getting credit and taking out loans in the future including mortgages.
- Your assets may be sold to pay your debts including your house.
Implementation and cost
- Contact the Australian Financial Security Authority (AFSA), who deal with personal bankruptcy.
- Submit a Bankruptcy Form.
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