Going bankrupt can have severe implications for people. To avoid bankruptcy you need to explore all available options.

We can provide professional advice & information to Australians and also advise people on all options as to how you can avoid going bankrupt. View our detailed pages on Bankruptcy Information or call us toll FREE for free help on 1800 73 11 55.

Why declare yourself bankrupt?

Most Australians only contemplate going bankrupt if they have unmanageable debts.

Bankruptcy forms

To declare yourself bankrupt you will need to complete the ITSA approved bankruptcy forms and lodge them with ITSA. Don’t pay for the forms when you can download them here at no cost!

If you are struggling to complete the forms and you need assistance call us for help. Completing the forms incorrectly could be a ground for your term to be extended so special care needs to be taken.

Choice of Trustee

Did you know you can choose your trustee to manage your estate? We have an in-house Trustee that can manage your estate. If you don’t want a privately registered trustee you can simply file your  papers with ITSA and the Official Trustee at ITSA will most likely become your trustee.

How do I avoid becoming bankrupt?

You may be able to avoid going bankrupt by following these steps:

• paying your debts in full over time; or
• entering into a formal agreement with your creditors (Debt Agreement or a Personal Insolvency Agreement).

If your creditors are threatening bankruptcy you may wish to consider to benefits of a formal arrangement, like a Debt Agreement or a Personal Insolvency Agreement.

We will assess your case free of charge and without obligation to see what type of arrangement is appropriate for you. Call us toll FREE on 1800 73 11 55

How to set up a formal agreement?

The first step is to prepare a budget of your household income and expenditure. If you have a surplus household budget you can use this surplus to pay into your agreement.

How long will I be bankrupt?

In most cases you will be bankrupt for 3 years. In some cases this time period can be increased up to 5 years or in extreme cases 8 years. For more information click here.

What do I need to know about becoming bankrupt?

Becoming bankrupt will affect your credit rating for at least 7 years, possibly longer.

Committing an offence could lead to your bankruptcy being extended for up to 8 years. Typical offences include (but not limited to):

• concealing an asset
• failing to disclose a liability
• leaving Australia without permission
• failing to attend an interview with your trustee
• failing to pay your statutory income contributions.

Becoming bankrupt can be complicated

Going bankrupt can be complicated (particularly if own property jointly with a non-bankrupt spouse or you will earn income which exceed the income contribution thresholds). We are happy to provide advice and free bankruptcy information if you are contemplating bankruptcy, however, if you are already bankrupt we regret we cannot provide any bankruptcy help. If you are already bankrupt and you need help we ask that you call a solicitor or ITSA to resolve your concern.

We help Australians make the right decision by providing you with the right information. Get the help you can trust on our toll FREE phone line on 1800 73 11 55

ITSA aims to regulate a personal insolvency system that produces equitable outcomes for debtors and creditors, enjoys public confidence and minimises the impact of financial failure on the community.

ITSA operates the bankruptcy registry, where debtors petitions are lodged, debt agreement proposals are processed and public records on insolvency are maintained.

The Official Receiver can also act as a Bankruptcy Trustee and administers thousands of bankrupt estates within Australia.

The fraud and investigation unit within ITSA will investigate possible offences under the Bankruptcy Act.  If a serious offence under the Bankruptcy Act has been made it may prepare a brief to the Commonwealth Director of Public Prosecution.

ITSA also has a Bankruptcy Regulation unit who monitors and regularly inspects the performance of Registered Trustees and Registered Debt Agreement Administrators.  The role of the Bankruptcy Regulation unit is to maintain integrity within the personal insolvency system and to enforce compliance with the Bankruptcy Act.

ITSA also provides extensive information about bankruptcy and its alternatives to debtors in financial distress.

We strongly recommend that you thoroughly review the content on ITSA’s web site at www.itsa.gov.au.