Declaring Bankruptcy in Australia
Have you thought about declaring bankruptcy as a means of getting out of debt? Are you aware of the repercussions that declaring bankruptcy brings? Just Budget outlines some of these issues below which highlights why bankruptcy is not always the answer.
Top 5 reasons to avoid a Bankruptcy:
- Bankruptcy WILL be a permanent mark on the National Insolvency Index (NPII). This means it is accessible for anyone to see.
- Bankruptcy will be listed on your credit file for five years making borrowing money impossible.
- Your assets including your motor vehicle may be sold on your behalf by an administered trustee. You may be required to pay a percentage of your income to trustee.
- There may be travel restrictions enforced.
- An investigation into your financial affairs may occur
- Property that was transferred by you prior to the bankruptcy may be recovered by your trustee.