Assess the Criteria

Step 1 – Assess the Criteria

Do you have a connection with Australia?

Australian Residents

Residents of Australia are free to file for bankruptcy if you have overwhelming debts which you cannot pay. The Official Receiver at ITSA has the discretion to reject a debtors’ petition if:

• it is not in the prescribed form;
• it is not accompanied by a Statement of Affairs;
• The Official Receiver is of the view that the Statement of Affair is inadequate;
• The Official Receiver is of the view that the debtor can pay their debts within a reasonable period of time; or
• The debtor doesn’t have a connection with Australia.

Non Residents

Non residents can only file for bankruptcy in Australia if they can demonstrate a connection with Australia.  To do this you will need to demonstrate:

• you have a dwelling in Australia;
• you have a business in Australia (whether in partnership or a sole trader).

If you cannot demonstrate a connection with Australia or the Official Receiver is of the view that your Statement of Affairs is inadequate or believes you can pay your debts (within a reasonable period) then your bankruptcy application may be refused.

More Information

For more information on the Official Receivers’ discretion to reject a debtors’ petition please view it here.