Why Should I Go Bankrupt and What Are My Options?

Bankruptcy Advisory Centre - Why Should I Go Bankrupt?
If you’re asking yourself, “Should I go bankrupt?” or “What are my options?” we have answers to help you make the best decisions to get out of debt. Many people find themselves unable to pay off their debts as required in the terms entered into with a lender. Australian regulations have clarified debt; our expert team can help you navigate your options. The Australian Financial Security Authority (AFSA) governs all personal insolvency and bankruptcy in Australia. The Bankruptcy Advisory Centre is the best place to start your journey out of debt. Our team can guide and advise on your specific situation’s bankruptcy process and laws. We want to help you navigate this tricky process. Our Free Consultation will give you the information you need to make an informed decision about achieving financial freedom.

What Is a Simple Definition of Bankruptcy?

Bankruptcy is often seen as a scary word. It is a legal term for when someone has more debt than they have funds to service that debt, but what it really means is that you have gone through tough times that have left you in a position where you cannot manage your debt. It has negative connotations but is not something to be ashamed of.

Why Should I Go Bankrupt ?

Seek help and alternatives to Bankruptcy.

Suppose you have decided to file for bankruptcy. You are making an important decision about why should I go bankrupt. In that case, there is a lot to consider on a personal and professional level, which is why it’s essential to seek expert advice before proceeding.

Find the Right Trustee to manage your Bankruptcy

Before you apply for bankruptcy, you choose a registered trustee to administer your bankrupt estate. It would help if you chose someone you can trust and who will ensure the best outcome for you. At the Bankruptcy Advisory Centre, we have the expertise to guide you through the process.  Andrew has over 30 years of experience and can help you navigate your way to financial freedom.

Bankruptcy may affect your income, employment, or business

There can be employment restrictions for bankrupts. If you earn over the amount set by the Australian Financial Security Authority (AFSA), you may need to make compulsory payments to your trustee. There may also be some restrictions on your employment and running a business. You can read more about this here or discuss this topic with our expert team.

Bankruptcy does not release you from all debts.

Most unsecured debts are covered in bankruptcy, which means you may no longer have to repay these debts, but there are some debts, such as a mortgage, that are considered secured debt and are exempt. You can read more about this here or discuss this topic with our expert team. We also explain who pays for bankruptcies.

Bankruptcy affects your ability to travel overseas

You must request permission from your trustee to travel overseas. It’s an offence to travel overseas without consent in writing. Your trustee may ask for further details to consider your request. You can read more about this here or discuss this topic with our expert team.

National Personal Insolvency Index (NPII)

Your appointed Trustee will also ensure that you and the other parties are treated equally under the law, including protecting everyone’s privacy throughout the process. However, your name will appear on the National Personal Insolvency Index, a searchable public register listing insolvency proceedings in Australia. You can read more about this here or discuss this topic with our expert team.

Does bankruptcy affect your ability to obtain future credit?

If you apply for credit over a set amount, you must inform the credit provider of your bankruptcy. Credit reporting agencies keep a record of your bankruptcy for five years from the date you became bankrupt or for two years from when your bankruptcy ends, whichever is later. However, there are options, and we can help you find the best option for you.

Assets and Bankruptcy: What are the consequences?

Your trustee is required to list and possibly sell your assets. You must declare any assets you have when you apply for bankruptcy and any new assets you receive. There are options regarding property assets, and our team can help you find the best solution regarding your house and mortgage. You can read more about this here or discuss this topic with our expert team.

You can keep ordinary household goods, tools up to a set amount used to earn an income and vehicle(s) with a value up to a set amount.

Take or continue legal action after filing for Bankruptcy

If you’re involved in any legal action, you need to inform your trustee, who can advise the best course of action. If you have a pending court case, you should contact the court to confirm whether you must still attend.

Bankruptcy usually lasts for three years, and one day

You need to understand how long does bankruptcies last. The bankruptcy period starts from the day we accept your bankruptcy application. If a creditor makes you bankrupt, the bankruptcy period begins from the date you file a statement of affairs and is accepted by the Australian Financial Security Authority (AFSA). Sometimes, your trustee can lodge an objection to extending the bankruptcy for up to eight years.

Reasons Why Bankruptcy Can Be A Good Idea

Sometimes Things Need to Get Worse Before It Can Get Better

When considering the reasons why should I go bankrupt? Think outside the box when you are ready to start thinking about your future again. Just because you are in a bad situation now does not mean it has to stay that way.

We think about all the options available to you, such as Debt Restructuring or a Debt Agreement, to give yourself more financial freedom and set your business up for success again. Bankruptcy should never be seen as an end to the road.

Some of History’s Best Businessmen and Women have gone Bankrupt.

At some point, we all experience failure. It’s a part of life that teaches us how to battle and overcome challenges so they become opportunities rather than problems. You can learn from their experience and start the process of building a new life for yourself financially.

Here are a few examples of people who survived bankruptcy.

  • Abraham Lincoln
  • Walt Disney
  • Henry Ford
  • Donald Trump
  • Larry King
  • Ulysses S Grant
  • Wayne Newton
  • George Foreman
  • Milton Hershey
  • Francis Ford Coppola

Moral of The Story

It’s vital to keep Bankruptcy in perspective – when asking yourself Why Should I Go Bankrupt? Accept that it’s not the future you would have chosen or the one you want your family and friends to live through, but know that it can be navigated, and you will come out the other end. What can be seen as shameful is blaming yourself and giving up altogether. Therefore, we aim to help you get through the complex process of dealing with overwhelming debt and to a place of recovery.

Andrew Bell Bankruptcy Advisor

Let’s Talk 

With over 30 years of experience in debt solutions and bankruptcy in Australia Andrew can find a solution for you.

“Nothing is more satisfying to me than knowing that I’ve helped someone get back on their feet by guiding them through the Bankruptcy Process. Rest assured, you’re in good hands with me as we solve your financial problems together.”

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