It comes as no surprise that deciding whether or not to declare bankruptcy is a stressful and difficult task. Bankruptcy often comes packaged with a negative stigma that may leave one feeling like their reputation and self-image is on the line. However, though there are some negative consequences to bankruptcy, there are also many advantages that one should consider.

We have heard the cons of declaring bankruptcy many times. Bankruptcy affects your credit file and a record remains on the National Personal Insolvency Index (NPII). Property and assets can also be taken as part of the estate administered by your trustee in order to pay off some of your debts to your creditors.

However, these cons can often be offset by the pros of declaring bankruptcy. After declaring bankruptcy, you will feel that a burden has been lifted from you. Harassment by creditors will cease, your telephone will stop ringing and the majority of your debts will be discharged, allowing for a fresh start. Though some assets may be taken, most of your belongings will be protected, such as household furniture, clothing, life insurance and endowment policies, motor vehicles and superannuation payments that have not been accessed prior to bankruptcy. You will also be free to travel throughout Australia and overseas, so long as permission is granted from your trustee prior to overseas travel.

If you wish to further discuss the benefits of declaring bankruptcy, Australian Bankruptcy Services is here for you. Speak to any of our professional team members toll free on 1800 462 767.