Here in Australia, there are two ways that a person can become bankrupt:

1. You can voluntarily make yourself bankrupt; or
2. One of your creditors can make you bankrupt

Declaring yourself Bankrupt voluntarily is done by way of a form called a Debtor’s Petition. You must complete this form, as well as a form known as a Statement of Affairs, and have it lodged with the Australian Financial Security Authority (“AFSA”). AFSA will then process and accept your voluntary Bankruptcy application.

AFSA can reject your Bankruptcy application if:

* You are not a permanent resident of Australia with a current Australian address;

* You are not insolvent, ie. they believe that you have the capacity to repay your debt within a reasonable amount of time; or

* Your Bankruptcy application is incomplete.

You will also need a Trustee to administer your Bankruptcy and again, you have two options:

1. You can appoint yourself a private Registered Trustee who will charge you a fee for their services; or
2. You can allow AFSA to act as your Trustee, which will either be free or incur a minimum fee of approximately $4,000.

Note that any fee to administer your Bankruptcy may be separate to any compulsory income contributions and/or sale of assets required by your Bankruptcy.

If you feel confident that you can complete the required Bankruptcy paperwork on your own, the forms can be downloaded from the AFSA website. Alternatively, to ensure that it is done properly and that there will be no delay in processing your application, The Australian Bankruptcy Service can assist with the completion of your paperwork and lodge it on your behalf from only $800. We also have a Registered Trustee on site who can act as your private Bankruptcy Trustee. Call the Australian Bankruptcy Service today on 1800 462 767 for more information on voluntary Bankruptcy and how we might be able to assist you.