Personal Law: Bankruptcy - Guides
Bankruptcy
13. Voluntary Bankruptcy
Firm / Chambers:
Last updated: 23 Jun 2015
- If you wish to proceed with voluntary bankruptcy and you believe this is your best option you will need to complete and lodge a:
- debtor's petition; and
- statement of affairs.
- Your debtor's petition must be lodged with the official receiver within 28 days of you signing it.
- It is important that you complete the forms truthfully as penalties apply if you provide false or misleading information.
- To be eligible to apply for bankruptcy you must have a relevant connection to Australia. That means:
- you must be personally present or ordinarily reside in Australia;
- you must have a dwelling-house or place of business in Australia; or
- you or your firm or partnership must carry on a business in Australia.
- Your application will be rejected by the official receiver if you lack the relevant Australian connection or if:
- your forms are incomplete or inaccurate;
- you have not provided sufficient proof of identify - two current forms of identification are required such as driver’s license and passport;
- the official receiver believes you are able to pay your debts and able to do so within a reasonable period of time; and
- you have been bankrupt more than twice previously or once in the previous five years; or
- you are unwilling to pay one, some or all of your creditors.
- If your application is not accepted your creditors will still be able to contact you and take recovery action.
- If you are dissatisfied with the official receiver’s decision to refuse your application you may seek a review of the decision by the Administrative Appeals Tribunal (AAT).
- Applications are processed promptly usually within 48 hours.
- If your debtor’s petition is accepted you become bankrupt and your creditors are notified of your bankruptcy.
- Your trustee is provided with copies of your forms and will promptly begin investigating your financial affairs.
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