Filing for bankruptcy is a last resort debt solution, and should only be considered after working through any other debt solutions that may apply to your situation. Bankruptcy is a scary word, but there is no shame in the action; though it is very restrictive and a final resort, unfortunately the economic climate or your personal circumstances may leaveyou no other option.
Bankruptcy can be filed in two different ways; you (or you and your family) may file to become bankrupt voluntarily after working through your other debt consolidation options with a financial advisor, or you may be forced into bankruptcy if you are unable to pay your debts and your creditor takes the charges to Court.
The duration of bankruptcy varies from case to case, but generally lasts for a minimum period of three years. You will be assigned a trustee who will primarily handle your finances. Bankruptcy comes with a wide number of restrictions including , requirement to make income contributions if your income is above a cartain amount, an inability to acquire further credit, , a commitment to sell as many divisible assets as possible and you will only be permitted to own a Motor Vehicle to the value of $7,050.
Bankruptcy is not generally a recommended debt solution, though is sometimes the only available option. As outlined above, bankruptcy causes considerable stress and restrictions on many aspects of life that you may usually take for granted. lifeafterdebt.com.au has many different debt consolidation solutions to consider before filing for bankruptcy, and employs experienced and understanding financial advisors to work with to decide on your best option. Contact us now on 1300 237 669 or take a look at our website today for more information or to book a consultation.