How To Declare Bankruptcy Yourself In Australia

how to file bankruptcy in australia

How to file for bankruptcy in australia yourself

Filing for bankruptcy in Australia yourself can be a daunting prospect, but with the right assistance and guidance it is possible. Before filing for bankruptcy, you should familiarise yourself with the process of how to go bankrupt to ensure that you are aware of all the implications involved. If you have any questions about how to declare yourself bankrupt please give us a call on 1300 794 492 or email

To file for bankruptcy there is no lodgement fee but the government does require that:

  1. You are unable to pay your debts as and when they are due, and
  2. You are living in Australia or have a house or business connection in Australia.

Applying for bankruptcies, there is no minimum or maximum income threshold. Nor is there a minimum or maximum amount you must owe.

If you are in a Debt Agreement, it must be terminated before you can apply for bankruptcy. To do this you will need to contact your debt agreement administrator.

To become bankrupt, it is necessary to complete a document called a ‘Bankruptcy Form’ which is a 23-page document. This document can be completed and lodged online with the Australian Financial Security Authority (AFSA) or completed and mailed to the Australian Financial Security Authority (AFSA) or lodged electronically on your behalf by a Bankruptcy Trustee.

To lodge your Bankruptcy Form online you first need to create an account on Insolvency Services which is operated by AFSA and can be accessed from the AFSA website.

Many people find this process of applying for bankruptcies daunting. Setting up the portal and completing the 23-page application can add to people’s already elevated stress levels. If this is your situation, we can help. We provide the service of giving you assistance and guidance to complete the Bankruptcy Form and we lodge your signed completed Form on your behalf. If you would like our help to complete and lodge your application give us a call on 1300 794 492 or email:

Also, if you would like to nominate a Trustee of your choice to manage your bankruptcy, we can introduce you to a Trustee for you to have a chat with before your forms are lodged. That way you are in control. If you don’t appoint a trustee AFSA will appoint one for you. This means you don’t get to choose your trustee. The selection of a trustee when filing for bankruptcy is a once-only opportunity. If you wish to nominate your own Trustee the Trustee must provide a Consent to Act Form which is lodged with your 23-page Bankruptcy Form. If you need assistance to find a trustee you are comfortable with, give us a call on 1300 794 492 and we will help you.

What Does It Mean When You Declare Yourself Bankrupt In Australia?

Declaring bankruptcy in Australia means that you have informed the government of your inability to pay debt. This could be due to a number of factors such as unemployment, illness or simply having too much debt. Once you declare bankruptcy, you are no longer legally responsible for paying any of your current debts and this will remain so permanently. Your debts do not return at the end of your bankruptcy period – three years. During bankruptcy, all creditors must stop contacting you and attempting to collect on debts owed. However, some restrictions may apply during bankruptcy such as not being able to obtain credit without disclosing that you are bankrupt or applying for certain jobs. You can however accumulate savings in your bank account and your employer’s super contributions are also protected for you. After the three years of bankruptcy has passed, you will have no debt and once again become eligible to start rebuilding your financial life by establishing good credit ratings and taking out new loans should they be available or necessary.

More Questions related to how to declare bankruptcy?

What are the consequences of declaring bankruptcy? Depending on your situation, filing to declare bankruptcy Australia can have both positive and negative effects. On the one hand it can be a helpful way to eliminate or reduce debt that you cannot afford to pay off. On the other hand, declaring bankruptcy will remain on your credit report for five years and this could make it more difficult for you to qualify for future loans or lines of credit. We trust we have been of assistance in better understanding how to declare bankruptcy yourself in Australia. We are here to help. If you have any questions please give us a call on 1300 794 492 or email:

Ask Us A Question

Give us a call on 1300 794 492
Alternatively, you can leave us a message and we will get back to you as soon as possible