Is there a Bankruptcy means test in Australia?

Yes, there is a bankruptcy means test in Australia that individuals must undergo before being declared bankrupt. The means test determines whether an individual can repay their debts and whether Bankruptcy is the most appropriate solution.

The means test considers the individual’s income, assets, and expenses. The income component of the test compares the individual’s average income over the past six months to the average income of a single person in Australia, considering any dependents. If the individual’s income is above average, they may not be eligible for Bankruptcy.

Bankruptcy Means Test

The assets component of the test assesses the individual’s assets, including property, vehicles, and savings, and determines whether they can be sold to repay debts. If the assets are worth more than a certain amount, the individual may not be eligible for Bankruptcy.

The expenses component of the test assesses the individual’s expenses, including living costs and debt repayments, to determine whether they can afford to repay their debts. If the individual’s expenses are too high, they may not be eligible for Bankruptcy.

Need more information about the Bankruptcy means test?

“The Bankruptcy means test in Australia is integral to the bankruptcy process. It helps to determine whether Bankruptcy is the most appropriate solution for individuals unable to repay their debts. We can help you navigate this process and protect your assets as the test considers the individual’s income, assets, and expenses to determine their ability to repay their debts”.

If claiming Bankruptcy is your best option when you are drowning in debt and constantly stressed over your financial future, we can help you make informed decisions. If you need personal insolvency advice in Sydney, Melbourne, Brisbane, Perth or anywhere around Australia, we can help you choose your path to financial freedom.