Declaring bankruptcy
How do you declare bankruptcy?
Hi there,
You can simply complete a number of forms supplied, for free, from the Australian Financial Security Authority (AFSA) who regulate bankruptcy.
They are available here.
You may wish to consider appointing a private trustee. These professionals often work for accounting firms and are licenced to take bankruptcy appointments. You should note that they will likely charge an upfront fee for the period of your bankruptcy (3yrs). If this is the case, then they will assist your with the AFSA forms and lodgement.
Alternatively, you can simply complete the AFSA forms and send them, with the requisiteidentification (listed on the forms), to AFSA directly. If this occurs, the Official Trustee will become your trustee in bankruptcy. There is no upfront cost with this options, however, the official trustee will charge for interim things like considering whether to let you travel overseas. You pay per request in this regard.
Suggested way forward
In considering between appointing a private trustee or going with the official trustee, you should consider your particular circumstances. If your circumstances are more complicated (with respect to assets and transactions; or living and working overseas etc), then you may wish to consider the private trustee option more closely. Also, you ought to consider the alternatives to bankruptcy such as Debt Agreements and Personal Insolvency Agreements. The AFSA website is a fantastic source of information.
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