Deciding on Bankruptcy – What Will Happen?
Where to start?
Having excessive debt can be overwhelming, no doubt you will have had sleepless nights and enormous amounts of stress. This can lead to relationship strain and health problems. By declaring bankruptcy, you are taking control and charting your own course, you will be drawing a line in the sand and leaving the stress behind.
To keep your stress levels down, we would like to touch on what will happen when you become bankrupt. If you have not already read My Story (can be accessed here) we recommend you do as it gives Slade’s experience when he became bankrupt. If you would like to have a chat with Slade, give him a call on 1300 764 197. We also recommend our article Getting on With Daily Life which can be accessed here and a couple of good articles on the Nicholls & Co website www.nichollsco.com.au which take you through what happens when you become bankrupt. The links to these articles are:
- What happens when you become bankrupt with Nicholls & Co which can be accessed here
- Life during bankruptcy which can be accessed here
Do you know: When you become bankrupt, a trustee is appointed to administer your bankruptcy and if you act before you become bankrupt, you can select the trustee.
Tip: Before lodging your Bankruptcy Form, organise a trustee you are comfortable with, to look after your bankruptcy.
What you need to do: Attach and lodge the trustee’s consent form with your Bankruptcy Form.
Reason: If you do not select your trustee and your bankruptcy has funds, AFSA will allocate your bankruptcy to a trustee without your say and you might not like the trustee they appoint. You cannot change from the trustee AFSA appoints.
The next step is to apply for bankruptcy, and we can help you with that process. To become bankrupt, you will need to complete a Bankruptcy Application, the application is a 23-page document that can be intimidating to complete. Most commonly, people are not quite sure what the questions are asking and how to answer them, that’s where we can help. Here at Understanding Bankruptcy we have helped thousands of people on their bankruptcy journey.
How we help:
- We will send you out our questionnaires, you answer as many questions as you can. Make a list of all the questions you are not sure about give us a call and we will explain those questions in simple language that you will understand.
- Send the questionnaires back to us, using your questionnaire responses we will complete the official application on your behalf.
- We send the application back to you for checking, signing and ID verification.
- Then we will lodge your application with the Australian Financial Security Authority (AFSA).
- We will notify you once your application has been received by AFSA.
- Within 1-5 days you will receive an email from AFSA with your bankruptcy number.
- All through this process we will be just a phone call away, if you have any questions or concerns just pick up the phone and we will be there to help you.
Our fee to help you through this process is $300. This is a flat fee you will not pay one cent more. If you need to pay the $300 by instalments you can, we try to be flexible so that we can help as many people as possible.