The number of people choosing to file for personal bankruptcy in Australia has increased in the last ten years. Though many people assume it’s because of an inability to repay their debts, personal bankruptcy can be quite helpful when used correctly under the right circumstances. Yet, most people choose not to file personal bankruptcy because they don’t know how it works or they think that the stigma attached to it will follow them around forever, preventing them from finding jobs and getting loans in the future.
The benefits of filing for bankruptcy
If you’re drowning in debt, declaring bankruptcy may be your best bet for getting back on your feet financially. The personal bankruptcy code offers a variety of benefits that can help you start fresh with a clean slate and erase some of your old debts. For example, if you file for Chapter 7 bankruptcy, all your unsecured debts will be discharged (in other words, wiped out). That means credit card balances, medical bills or even student loans could disappear overnight. You might also qualify to have certain assets—like a car or home—exempted from liquidation. For more information about how filing for bankruptcy could help get rid of some of your old debt and give you more financial flexibility going forward, contact an experienced attorney today.
How to go about filing for bankruptcy
Before you decide to file for bankruptcy, it’s a good idea to sit down with an accountant or finance expert to talk about how you can pay off your debt. They will be able to help you come up with an individualized plan that best suits your personal accounting needs. Once you start following that plan, there’s a good chance thing will start looking up in no time!
Filing an individual bankruptcy takes less than expected
When filing bankruptcy, your personal accounting will be a huge part of making sure you’re going to qualify. This can seem a little overwhelming at first but remember that there is help available to you if you get overwhelmed. Working with an accountant or someone with experience in personal accounting is a great way to make sure you don’t miss anything.
The right time to file a bankruptcy
When you’re struggling to pay your debts and facing a huge amount of debt, it can be tempting to think about bankruptcy. But for most people, filing for bankruptcy is not a smart financial decision. It comes with a long list of drawbacks—not least that it means you’ll have to start repaying your debts from scratch again once you emerge from bankruptcy protection.
The various types of bankruptcies available
Although personal bankruptcy is an important step in rebuilding your credit, it comes with long-term consequences. Before you file for Chapter 7 or 13 bankruptcy, it’s a good idea to consider all your options. If you think personal bankruptcy may be your best choice, start by consulting a financial advisor or lawyer who can help you navigate the complex process. However, if you want to know more about other types of bankruptcies available, here is some information.
Where to get help with this process
As with most legal matters, bankruptcy can be confusing. Many people don’t understand what is entailed in filing for personal bankruptcy. There are a lot of different options available to people who want to get rid of their debts. Your first step in learning about your options should be consulting an attorney or bankruptcy lawyer, as they will help you decide which form of bankruptcy is best for you and your specific situation.