Apply for bankruptcy yourself
✔︎ Debtor's petition kit
✔︎ Form 5 Declaration
✔︎ Statement of financial affairs
✔︎ Step-by-step instructions
✔︎ Simple explanation of the law
Does not include Court or government fees
DIY BANKRUPTCY KIT
What is bankruptcy?
If you are unable to pay your debts and cannot come to a suitable repayment arrangement with your creditors, you may be able to lodge a petition to become bankrupt (called a debtor's petition). A creditor may also take action to have you declared bankrupt by order of the Court (called a sequestration order). If you are bankrupt, creditors will not be able to harass you for payment of debts. However, there are also adverse consequences of becoming bankrupt, such as personal restrictions regarding assets, income and travel. There are a number of other informal and formal options to think about under the bankruptcy laws in Australia.
What's in the kit?
The Bankruptcy kit contains all the forms you need to make your own petition for bankruptcy, with simple to follow instructions. Also included is an information and instruction guide written in plain English, that explains the laws under the Bankruptcy Act and all formal and informal options to help manage your debt and get back on track. Most people that apply for bankruptcy are unable to afford a Lawyer to assist with making the application. With the bankruptcy kit, you can easily prepare your own bankruptcy application and save thousands in legal fees. Please note there is a fee to apply for bankruptcy that is not included with the cost of this kit.
The kit includes the following:
Debtor's petition kit - Fillable PDF forms
Everything you need to lodge your own petition for bankruptcy. Easy to complete forms, together with instructions to complete. Includes Statement of financial affairs and Declaration of intention.
Debt Management Instruction Guide - simple to read PDF booklet
Learn about the informal and formal options available to you to help manage your debt and get a fresh start. The guide is written in plain language to help you better understand your legal problem and the options available to you.
How does it work?
- Download the forms;
- Save to your computer;
- Complete the forms following the instructions;
- Submit the forms and pay the fee.
COMMON QUESTIONS ABOUT BANKRUPTCY
What is a PIA?
It's a legal agreement between you and your creditors which protects you from bankruptcy but allows the creditors to gain a benefit also. Like bankruptcy, a PIA is subject to a controlling trustee being appointed.
What happens if I become a bankrupt?
You will usually be a bankrupt for 3 years. There are a number of other consequences:
You will be noted on the (NPII). This is where credit rating companies (like VEDA) will then obtain that information. They are obligated to keep this information on your file for 5 years.
A trustee will administer your financial affairs. They can sell your assets to repay your debts. Trustees must adhere to certain standards by law.
You need to apply for permission to do certain things, such as go overseas.
There are limits on the money you can earn and things you can own.
It is a criminal offence to apply for credit or a credit card.
You won't be able to keep assets above a certain value.
What can I keep if I am bankrupt?
If you own your car outright and the value is less than $7,350.00, you will not have to forfeit it.
If you have tools of trade less than a value of $3,650.00, you can keep them to earn an income.
You will only have to make contributions from your income if it is above a certain amount (currently $1,283.00 per week after tax for someone with 2 children).
Are there any other options besides bankruptcy?
Yes, you can lodge a Bankruptcy Notice on your creditors first.They can't contact you for 21 days. During that time, you can consider other options, such as debt agreements or personal insolvency agreements.
You need to make this decision and enter in the agreement or file for bankruptcy within the 21 days.
Does the trustee appointed get paid?
Yes. They are entitled under the law to be paid to manage a bankrupt estate. There is a minimum fee that a trustee can be paid under the Bankruptcy Act (at the moment, $5,000 but subject to change).