VOLUNTARY BANKRUPTCY

INTRODUCTION:
If you are unable to pay your debts and cannot come to suitable repayment arrangements. Debt agreement or Personal insolvency agreement.
You may voluntarily lodge a petition to become bankrupt.
Your petition for bankruptcy may not be accepted if it appears from the information that is lodged that you are likely to be able to pay your debts, and or you are avoiding payment of debt's, and or have been previously bankrupt.

A debtor is ineligible to present a debtors petition for bankruptcy if they are not in Australia or do not have an Australian connection.

THE CONSEQUENCES OF BANKRUPTCY ARE SERIOUS.

Bankruptcy generally lasts for a period of three years. BUT can be extended. You have permanent record of bankruptcy on the National Personal Insolvency Index- this information can be accessed by anyone for a fee.
Creditors are notified of your bankruptcy.
A trustee is appointed to administer the bankruptcy.
Your trustee will sell our assets, recover any income you earn over a certain limit, investigate your financial affairs and may recover property that you have transferred to someone else for inadequate consideration prior to your bankruptcy or which you may receive during the period of your bankruptcy.

You can choose to appoint a registered trustee by obtaining and providing their consent when you lodge your petition to become bankrupt.
ITSA may arrange for a registered trustee to be appointed. The official trustee is initially appointed to administer your estate. Your creditors may choose to change the trustee at any time. The duties of a trustee are specified in legislation and trustees have to adhere to certain standards while administering your estate.
You will be required to pay a fee for services.(discussed in prior posts)

I will break VOLUNTARY BANKRUPTCY into sections, there is a lot to go over in the next three weeks.