• Home
  • About
    • Privacy Policy
    • Write for Australian Women Online
  • Advertise With Us
  • Horoscopes
  • Style
  • Shoe Boutique
  • eFashion
  • Weight Watchers Australia

Australian Women Online

Business, career, health and lifestyle content for women

  • Home
  • BLOG
  • BOOKS
  • BUSINESS
  • CAREER
  • COOKING
  • HEALTH
  • LIFESTYLE
    • Automotive
    • Beauty
    • Fashion
    • Pets
    • Relationships
    • Your Home
    • Your Money
  • TECHNOLOGY
  • TRAVEL
    • Discount Holidays
You are here: Home / Uncategorized / Personal Bankruptcy: How To File and How It Will Affect Your Credit Rating

Personal Bankruptcy: How To File and How It Will Affect Your Credit Rating

25 October 2012 by Biljana Dimovska

Share this:

  • Tweet
  • Email
  • More
  • Share on Tumblr
  • Print
  • WhatsApp

Although the decision to file for bankruptcy should never be taken lightly, for those who are experiencing their own personal financial hell, bankruptcy can provide immediate relief from the financial hardship caused by mounting debt.

In Australia, individuals do not need a lawyer to file for bankruptcy for personal debts. To file for bankruptcy protection in Australia, you must complete a Debtors Petition and Statement of Affairs and submit it, along with all requested documentation, to the Insolvency and Trustee Service of Australia (ITSA).

On the Debtors Petition and Statement of Affairs form you must provide the following information:

• Names of all your debtors, addresses, and the amount that is owed.
• Current income information.
• Personal asset information. This includes all property that you own, bank accounts, stocks or shares and any money that is owed to you.
• You must establish that the debts are either personal or business related.

Once the ITSA has received your completed form and accepted it, you will be considered bankrupt. Once you are officially bankrupt, you will receive notification from the ITSA of your bankruptcy case number and your obligations.

How Much Debt Must I Have To File For Bankruptcy?
There are no minimum requirements to file for bankruptcy protection in Australia. However, because of the seriousness of this type of action, it should be avoided for small debts. Many times you can easily work out an arrangement with the creditor for smaller debts. A creditor cannot make you bankrupt unless the debt is $5,000 or more.

If you do file for bankruptcy, it should be noted that the following debts cannot be included on your bankruptcy petition:

• Child support and maintenance payments.
• Fines or penalties that have been imposed on the debtor by any court.
• Most higher education debts.

How Long Does Bankruptcy Last?
Once your petition for bankruptcy protection has been filed, you will be considered bankrupt for the next three years and one day. However, the trustee appointed to your case by the ITSA can extend that bankruptcy period to either five or eight years if you do not comply with all obligations placed on you by the ITSA. After this time period has elapsed, you can apply to ITSA for your bankruptcy to be discharged.

What Will Bankruptcy Do To My Credit Rating?
Bankruptcy will appear on your credit record for seven years from the date you initially file for protection. During this seven year period you may find it very difficult to obtain any type of credit. Creditors are often nervous about extending even small amounts of credit to someone that has recently gone bankrupt.

A bankruptcy on your credit report may also have a negative impact on your employment. Some employment positions and trade unions do not regard a bankruptcy as acceptable.

What About My Home And Car?
When you file for personal bankruptcy, you are normally allowed to keep your car if it is your main source of transportation and is valued under a set amount. If the car is a secondary car or one that exceeds the value set by the ITSA, the car will be sold and the monies used to repay your debts.

A home is considered an asset and the trustee will be required to review the current status of the home. If there is excess equity available in the home, the trustee may be required to sell the home to access the equity to repay your creditors. The only homes that are protected are ones that have a Defense Service Home mortgage. However, these homes can also be sold if permission is granted by the Secretary of the Department of Veterans Affairs.

For more information visit the website: www.itsa.gov.au

About the Author
Biljana is a online researcher and a blogger, currently interested in publishing useful information about personal bankruptcy issues in Australia.

You May Also Like:

Filed Under: Uncategorized, Your Home

Ads by Google

Comments

  1. barry says

    19 August 2013 at 6:12 am

    A Helping Hand with Hardship from Australian Banks

    This cannot be accessed and I’m not surprised…. the banks today are no more than loan sharks , this is how they operate…they keep offering you credit , then , when you have difficulty paying , they come across with the heavy phone calls demanding their money .
    One bank even deposited money in to my account “Before” I signed an agreement for same .
    A lesson well learned , they are out to screw every cent they can from the consumer, and sending you to bankruptcy doesn’t seem to bother them .
    In my case they will lose their money , as I have no job , no assets, and no money.
    I shall leave this planet with a smile on my face .
    Sadly , the money grabbers have turned the world in to a cesspool so deep , they will probably end up drowning in it themselves.
    Another example of the height of intelligence of the human race .
    Take care folks , and watch the debts.

  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

New Content

  • The Long-Term Benefits of Property Investment in Singapore for Wealth Building
  • How to Start a Successful Career in Nutrition
  • Best One-Piece Swimsuits to Wear in 2023
  • Identifying Potential Clients and Building Relationships with Them
  • Trending: Vegan Bags in 2023
  • 9 Solar Benefits You Can’t Ignore
  • The Social Benefits of Running: How Running Can Help You Build Relationships
  • Cheek to Chic: How to Achieve the Ultimate Glowing Makeup with Ease
  • How to Transform Your Bathroom Without Breaking the Bank
  • Why You Should Book Yourself a Photoshoot
Technogym

Popular Content

  • Moore Weekly Stars
  • Sexy and Stylish Short Hairstyles for Women Over 60
  • Rip Curl Almost Famous Ii Womens Full Cotton Cargo Pants Vetiver Vetiver
  • Top 9 Cars for Women in Australia
  • Cue Crepe Long Line Dress
  • About
  • Sass & Bide East Of Eden Sequin A-Line Midi Skirt White
  • Escort Services: Do Escorts Ever Fall For Their Clients?
  • Alannah Hill Holiday Romance Heels
  • Advertise with Australian Women Online

Australian Women Online © Copyright 2007 - 2023 Deborah Robinson ABN 38 119 171 979 · All Rights Reserved