Bankruptcy is often perceived as an easy way of getting out of debt and starting afresh. However, bankruptcy comes with serious consequences, and all other avenues should be exhausted before applying for bankruptcy.
Some of the consequences of bankruptcy include:
- Your assets may be sold
- Your name will permanently appear on the National Personal Insolvency Index which is an online register that anyone can check
- You cannot manage a company or act as a Director without the consent of the Court
- It may make it difficult to get loans or insurance
- You will need written permission to travel overseas
To find a way to get out of debt without going into bankruptcy, contact us for a free consultation.
Video is courtesy of Australia Financial Security Authority.