Bankruptcy laws in Australia are in place to protect borrowers when they find themselves in a position where debt simply cannot be repaid. Bankruptcy laws will ensure that a workable resolution will be found between borrower and creditors to satisfy both parties. Initially, both parties should seek to find either a formal or informal agreement to cover any repayments, but if this is impossible than the borrower will proceed with bankruptcy.
Bankruptcy will occur through one of two ways, either the borrower will file bankruptcy and proceed through the bankruptcy laws process or creditors will have the borrower declared bankrupt through the legal system.
Bankruptcy laws are not limited by the amount of debt, property ownership or income. The only limitations to declaring bankruptcy in Australia is that you must be an Australian citizen live here during insolvency and own a home or business in Australia.
Furthermore, bankruptcy laws will also impact on your occupation with certain licenses no longer available to you such as builder's licenses, real estate licenses, liquor license, tax agent's licenses and others. People who are listed as bankrupt cannot be director of any company without approval.
If you have decided to file for bankruptcy, then you should contact bankruptcy lawyers to take you through the process as you must, for legal reasons, file all documentation with the ITSA, the government body which handles bankruptcy. After your case has been examined, factors of your life will determine the next steps, which a bankruptcy lawyer will be able to assist you with.
Bankruptcy laws in Australia dictate that the borrower must remain bankrupt for a minimal of three years and you must stay in cooperation with your bankruptcy lawyer or trustee.
Bankruptcy lawyers will be able to advise you on all the legal options available and the benefits and disadvantages of each. Additionally, bankruptcy lawyers will remain in contact and advise you of ongoing legal obligations, conduct any negotiations and dispute resolutions while also submitting any court documents on your behalf and attend court proceedings.
Bankruptcy is not an option to be entered lightly and having someone well versed in Australia's bankruptcy laws will help you to make any decisions regarding your financial future. Bankruptcy lawyers can advise you of your rights and responsibilities should you go bankrupt.