Join our mailing list to stay informed!
Posted by Revive Financial on Apr 13, 2016 12:00:00 AM

While many of us do attempt to save as much money as we can by budgeting and building funds, unfortunate circumstances do arise – sometimes without warning. This often results unavoidably in company bankruptcy or voluntary bankruptcy.

Whether you’re a business or individual, it’s important to seek bankruptcy advice in Australia. We’ve created this article to not only give you some pointers on how to file bankruptcy yourself, but to also show you how to deal with personal bankruptcies to make them as stress-free as possible.

Let’s begin by discussing the most common misconceptions about bankruptcy in Australia.

Misconception 1: You Will Lose Your Home if You Become Bankrupt

When you file bankruptcy yourself, it does not automatically indicate that you will lose your house. As long as the payments are made at the agreed time, properties are generally not seized by banks to cover the debt accumulated by bankruptcy.

On the other hand, if you do become bankrupt and cannot afford to pay your house repayments, in addition to other significant debts, creditors may contact your bank who could possibly take action.

Misconception 2: You Will Lose Your Job if You Become Bankrupt

Although employers or potential employers are able to access your credit report if necessary, bankruptcy is not grounds for the termination of your employment. In fact, it is considered unethical and discriminative if they do.

So if you’re thinking about filing for personal bankruptcy or company bankruptcy, don’t fear that you will lose your job (or your business) as this is not always the case.

Misconception 3: You Will Become Debt-Free After Declaring Bankruptcy

If you think that declaring bankruptcy yourself will clear each of your debts then you may need to think again. Even though it may remove most individual debts, chances are they will not clear the majority of common debts like HECS loans, tax repayments or debts resulting from instances of fraud.

If you aren’t sure about what debts to clear it is best to consult with a professional in the bankruptcy field.

Misconception 4: You Will No Longer Be Able to Get Credit After Filing for Bankruptcy

This is not always true, even though it may seem like it is an obvious fact. The best thing you can do is to rectify your credit score as soon as possible after declaring bankruptcy yourself, in order to bring your credit standing back to the green area.

Company’s and large banking or financial institution consider many factors when reviewing your application. If they see you have come out of debt and are working towards saving, they’re much likely to accept your application even in cases where you have filed for bankruptcy in the past.

If you’re trying to file for bankruptcy yourself and want to find out more about how you can make this process easy and straightforward, get your financial life revived by contacting Revive Financial on 1800 534 534. Seeking bankruptcy advice in Australia is just a phone call away.

Is-Your-Business-In-Financial-Distress

Topics: Bankruptcy, Personal Debt

How Can We Assist You Today?

Business Debt Icon Business
Personal Debt Icon Personal
Please select an assistance option to continue.

Types Of Unsecured Debts

Credit Card Icon Credit/Store Cards
Personal Loan Icon Personal Loan
Pay Day Loan Icon Pay Day Loan
Tax Debt Icon Tax Debt
Disconnected Utilities Icon Utility Bill
Other Debts Icon Other
Please select at least one type of unsecured debt.

Your Business Structure

Sole Trader Icon Sole Trader
Partnership Icon Partnership
Company Icon Pty Ltd Company
Tax Debt Icon Trust
Please select at business structure to continue.

Unsecured Debt Amount

$8,000
$1,000
$100,000+

Business Debt Amount

$100,000
$10,000
$1,000,000+

Take Back Control Today!

First Name

Last Name

Email

Phone Number

Phone number must be 10-digits long and begin with a 0. (e.g. 04 1234 5678)

Post Code

Post code must be 4-digits long (e.g. 4567)

Some of your details appear incorrect.
Please update the highlighted fields and re-submit.

Congratulations

You’ve taken the first step to steer your business back to viability

Let’s keep the momentum going, take the second step by linking your Xero account now.

Congratulations

You've taken the first step to becoming debt free

Let's keep the momentum going, take the second step now and complete the assessment form.

By submitting this form you acknowledge that you have read and accept our Privacy Policy