Bankruptcy

If you are in debt and are considering bankruptcy, you should know that bankruptcy is your last resort. Bankruptcy has very serious consequences for the rest of your life. Do not take this step without speaking to a bankruptcy agent. There are alternatives.

Do I Need to Become Bankrupt?
With creditors pressing you for payment, bankruptcy may seem attractive, however it should be avoided if at all possible. Once bankrupt it is difficult and expensive to undo if you change your mind. Before going bankrupt it is important to consider first speaking with a bankruptcy agent to see if there may be other options available to you.

How do I become Bankrupt?
You can become bankrupt voluntarily or you can become bankrupt on the actions of a creditor. Once you have spoken with a bankruptcy agent and after reviewing your options you have decided that voluntary bankruptcy is your best option, the bankruptcy agent will assist you in taking the necessary steps to become bankrupt.

Is there a minimum amount I need to owe before I can go Bankrupt?
No. You can become bankrupt voluntarily owing any amount. However, a creditor cannot make you bankrupt unless the debt is greater or equal to $2,000.

What happens to my debts after I go Bankrupt?
Your unsecured creditors will not be able to take any further actions against you to recover their debts. They may lodge claims in the bankruptcy. Important bankruptcy exceptions are fines for breaches of the law, debts from acts of fraud, maintenance payments and debts owed to the Department of Social Security. Bankruptcy does not protect you from paying these debts, and you are still liable for them. The other exceptions are secured creditors. Also, if you have unpaid accounts relating to services like electricity, phone or gas, the supplier might require payment of the account or a deposit for the service to be maintained.