FAQs | Applying for Bankruptcy
If you are in a Debt Agreement, you cannot file for bankruptcy without first terminating the Debt Agreement. Likewise, a creditor who is subject to the Debt Agreement cannot make you bankrupt whilst the Debt Agreement remains in place.
If you are in a Debt Agreement and want to become bankrupt, you can but you must first terminate the Debt Agreement before you can file for bankruptcy. A Debt Agreement will be automatically terminated if you fail to make repayments for a period of 6 months. Alternatively, you can contact your Debt Agreement administrator and inform them that you wish to end the Debt Agreement. The administrator will send you a form to complete. The application to end/vary the Debt Agreement will be lodged with the Australian Financial Security Authority, the creditors who are party to the Debt Agreement will be asked to vote on whether to end the Debt Agreement or not. If the creditors believe that they will not be receiving any more repayments from you, they will vote to end the Debt Agreement.
Ending the Debt Agreement gives each creditor the right to pursue you for recovery of their debt. So, once you end the Debt Agreement you should lodge your Bankruptcy Form before the debt collection phone calls from creditors start.
If you need help lodging your Bankruptcy Form call Nicholls & Co on 1300 060 122 or email email@example.com., we will help you with that process.
Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email firstname.lastname@example.org.