Bankruptcy: Am I Eligible?

There are two requirements you must meet to apply for bankruptcy:

1) You cannot pay your debts on time (insolvent) and;
2) You are currently in Australia and either live or have a business connection to Australia.

You do not need to have a minimum or maximum sum of debt or income to be eligible for bankruptcy. There is no fee to apply for bankruptcy.

If you are in a debt agreement and would like to apply for bankruptcy, contact the administrator of your debt agreement. You are required to end the debt agreement before declaring bankruptcy.

Ensure that you are aware of the full consequences of bankruptcy before you apply. These include:

● A trustee will manage your bankruptcy and work with you and your creditors to achieve a fair and equitable outcome for all. You have a legal obligation to provide information to them such as bank statements.
● You have some restrictions on employment and whether you can run a business. If your income is over a certain amount, you will need to make payments to your trustee.
● Bankruptcy does not cover all debts. There are some exceptions.
● You need permission from your trustee to travel overseas.
● Your name is listed on the National Personal Insolvency Index (NPII) permanently.
● Obtaining credit in the future will be impacted. You must report your credit provider for a certain time period.
● Your trustee can sell your assets.
● It is possible that you lose the right to take legal action.
● Your bankruptcy will usually last for 3 years and 1 day from the day you file the Bankruptcy Form.

Read here for more on the consequences of bankruptcy.

If you are facing financial issues or want more information on insolvency and bankruptcy contact CRS Insolvency Services on 1800 210 073 for 24/7 free expert advice.