It is free to file for bankruptcy - there is no filing fee.
There is no filing fee or cost to complete the forms for bankruptcy. You can fill in the forms yourself without cost. You will find them here.
If you don’t want to do that, it can be less stressful to have someone prepare the forms for you. Nicholls & Co does not provide this service but we can refer you to a creditable firm that does.
That service will come at a cost, but you should not be paying more than $300.
ALERT – PROPOSED CHANGE TO BANKRUPTCY
Legislation is before parliament to reduce the period of bankruptcy to one year.
Within the proposed legislation, persons presently subject to bankruptcy will be discharged if their period of bankruptcy has been longer than one year.
The three significant effects of one-year bankruptcies would be:
- People will only be prevented from being a director of a company for one year
- People will only be prevented from having a self-managed super fund for one year
- People will be able save, invest and accumulate assets after the one-year of bankruptcy.
If the legislation before parliament becomes law, bankruptcy will be a much more attractive option for resolution of financial problems.
Bankruptcy – Scary thought?
Or is it? You’re in debt and you want a future. Bankruptcy is a word. It’s not a sentence. It’s a solution. Don’t be afraid for the future: you won’t lose control of everything and you won’t be publicly shamed as a failure. You might be surprised just how many of the rich and famous have taken this move in the past to ensure they do have a future. So why not you?
Job loss, divorce and illness are major contributors to the level of debt that needs a sensible solution. You aren’t alone if you are in this situation, and you won’t be alone if you choose this solution.
So don’t be afraid of bankruptcy. You should be far more scared if you choose NOT to fix a problem that has a solution. And we can help.
Bankruptcy overview – from my perspective
I’m Alan Nicholls and I can help you navigate your way safely through bankruptcy. I’m a registered bankruptcy trustee and chartered accountant, and every day I hear from people like you, people who want to pay their debts, but just can’t. They’ve tried to keep up with the minimum repayments, talked to creditors about other solutions, and tried and tried … but they’re getting nowhere. For many of them – and maybe you too – the situation is simply because their circumstances have changed. Suddenly debt has become their reality.
My solution? Declare bankruptcy. It gives you the chance to start a new life, a life that is, in most cases, completely debt free – and you can start this new life now.
What happens, and how?
You can become bankrupt within 10-14 days, and the first step is getting a bankruptcy trustee. Perhaps you will choose me. As a result, almost all your debts (debts and liabilities – or ‘provable debts’ in bankruptcy terms) become owed by your bankrupt estate, not by you. You are now debt-free, or almost debt-free.
There are exceptions such as anything you owe to Centrelink, Child Support and HECS. Court-imposed fines and debt as a result of fraud are also not covered. If you want to keep an asset that is allowed under the law and is subject to a loan, such as a car, you must continue to pay for it. This is ‘secured debt’.
For now, we’re most concerned with unsecured debt, the type I come across most of the time. Credit card debt, tax debt, store card debt, phone debt, personal loan debt, and the like. Does that sound familiar? This debt becomes owing by your bankrupt estate, not by you, as soon as you become bankrupt.
What does it cost?
You’re probably wondering what a bankruptcy trustee will cost you. If you are my client, the answer is nothing. You do not receive an invoice. My fees come out of the bankrupt estate. If the bankrupt estate cannot pay my fees, I write them off.
My services cost you – personally – zero.
Who can you trust?
Need someone you can trust for cost-free help and information on bankruptcy? The Australian Financial Security Authority (AFSA) is the government agency responsible for the personal insolvency system.
I am an AFSA ‘Registered Trustee’.