Bankruptcy used to be something that people were ashamed to talk about. Whilst some stigma still remains, with more than 20,000 Australians filing for bankruptcy every year the perceived negative connotations are obviously fading. In many of the cases we deal with people come to us concerned about bankruptcy but find they are actually able to avoid bankruptcy by exploring the alternatives to bankruptcy.

The Good

The obvious advantage to bankruptcy is that once you have declared yourself bankrupt, your creditors can no longer hassle or pursue you to recover their debt (unless it is a non-provable debt in bankruptcy). Essentially, all provable debts will be wiped clean and your appointed trustee will deal with your creditors. The good news is that your creditors will stop calling you!

The Bad

The impact on your ability to borrow will have a last effect for at least 7 years and you will be subject to other restrictions and obligations.

It’s not the end of the world

It is important to remember that many people declare bankruptcy and end up living full and successful lives. It is not the end of the world and you should not be ashamed if you have fully explored all options available to you before filing for bankruptcy. If your debts are truly unmanageable bankruptcy may be the only way out of the debt spiral. There are many stories of people who have gone bankrupt and ended up running very successful businesses.We have advised thousands of Australians on whether or not bankruptcy was the right option for them. To speak to one of our bankruptcy consultants, call today or fill in our contact form and we will get back to you.

Advice from the Australian Bankruptcy Service is available on our toll free telephone line is open 24 hours everyday / 7 days a week on 1800 462 767.

All calls are free, entirely confidential and if required, anonymous.